China manages a close in the 3400s

Many won't have noticed (nor care), that with the Shanghai comp' seeing a net daily gain of 1.1% @ 3425, it was a rather important day in the Chinese equity market. Next target for the communistic bulls will be a break above the monthly 10MA (3694).


China, daily

China, monthly

Summary

Suffice to add... the current net monthly gain of 12.2% is the biggest gain since April. If October closes anywhere in the 3400s or higher.. it will bode for further upside.. at least to the 3650/3750 zone.

US equity bears should be extremely mindful that if China has seen a key floor.. it will bode for the sp'2100s.. .and new historic highs (at least in some indexes) before year end .

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Looking ahead

Wed' will see the latest EIA oil report.

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Goodnight from London