A Tale of Two Markets

The Shanghai has turned down this evening after opening up and looks to continue the downtrend.  That is one ugly chart.

Meanwhile, the S&P500 looks like it really wants to resolve its wedge formation to the upside.  After a year of head fakes,  bull and bear traps, traders may have lost a little trust in the charts, however.   A good employment number on Friday may provide a nice catalyst for some resolution.

Keep the Shanghai on the radar this year.  If it continues down and does not respond to further monetary easing, which we expect before the Chinese New Year,  think tail risk.

(click here if chart is not observable)

This entry was posted in Black Swan Watch, China, Equities and tagged , . Bookmark the permalink.

2 Responses to A Tale of Two Markets

  1. Pingback: Wednesday 7atSeven: unreal yields | Abnormal Returns

  2. bench jacke damen kidder
    hello, excellent blog site, and a decent understand! just one for my book marks.

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