Shanghai Composite Index : Another failure at 2940
March 3, 2011 Leave a comment
We like to follow the Shanghai Composite Index because it has a life of its own for the most part, with a low correlation to the US markets and all who follow them…which is most.
On Sunday and again during the week we pointed out the SSEC needs to power pat 2940 if the Asian bulls are to have another run, and also said the SET would need to pass the 1k mark for local confirmation. However the SSEC hit 2940 earlier today but has subsequently sold off a tad, and we thin the same kind of scenario is brewing on the SET, albeit with a potential delay of one more day. Of course Gadhafi might get shot and the markets will be up for a relief session or two, but he may cause plenty more havoc yet, and help oil (NYMEX) to post its first weekly close above US$ 100 since.
CL0Y is currently trading at 101.22, Spot Gold at 1427.30 and the SSEC 2902, with its next supports at 2889-2893 then strongly at and just above 2860.