China continuing to battle upward

After Monday's net decline of -5.5%, the Shanghai comp' was on the edge of losing key support. There is little doubt the PBOC have been 'meddling' again. The Wednesday gain of 2.3% @ 3536, brings the SSEC within range of the 200dma, but more importantly.. the monthly 10MA, both in the upper 3700s.


China, daily

China, monthly

Summary

Suffice to say.. we have a clear spike floor from the Monday low of 3327.. on rising support.

More than anything, if the Shanghai comp' can break back into the 3800s.. and hold above, it will open the door to 6K by end 2016.

I realise that is a crazy scenario, but then.. in summer 2014, when I touted 5K 'by late 2015', that too was deemed crazy. It happened 3-6 months earlier than even I had expected.

I will be keeping a close eye on the China market.. but then... I always do!


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Looking ahead

Thursday is packed...

The ECB are set to announce another policy update, with a Draghi press conf'.

Data: weekly jobs, PMI/ISM service sector, factory orders

*Yellen is set to give testimony to the US joint finance committee, and that will likely get blanket coverage from 10am-1pm.
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Goodnight from London