The Chinese market has dropped for the last several sessions and the Shanghai index closed Friday’s session just above the 2700 level which is an area of chart support and also right on the 20-day lower Bollinger band.
One would expect to see a counter-trend rally in next week’s trading.
1325 is now a technically significant level for the S&P 500 futures as indicated on the hourly chart. In yesterday’s commentary I noted that the background environment remains reasonably supportive for US equities and after yesterday’s weak data on GDP and jobs one has to factor in the possibility of possibly new initiatives by the Fed to support asset prices during the summer months.
Fading rallies on EUR/USD has been quite profitable this morning and the 15-minute chart - a lower time frame granularity than I normally feature here - shows that $1.4180 is a fairly key level for the single currency for the remainder of today’s trading.
A break below that would expose two more key support levels at 1.4080 and then the low from Monday’s trading in the vicinity of $1.40.
Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market.
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