The Chinese equity market began the month with renewed hyper strength, +4.7% @ 4828. The giant psy' level of 5K remains an obvious target. With the Shanghai comp' having ramped from 1991 (May 2014)... a major retrace is increasingly due this summer... probably to the 3400s.
Suffice to add.. regardless of whether 5K is broken in the near term... a major retrace across most world equity markets looks increasingly due this summer.
For the SSEC, the natural downside target would be the key 3400 breakout level. If correct, that would really spook the amateur China retail investor (or should that be gambler?).
Regardless of any summer/autumnal downside... the broader trend remains hyper-strong.
Tuesday will see Factory orders data (10am).
Goodnight from London