14 Nov, Weekly Stock Market Review

The Shanghai Composite Index started the ball rolling Friday as it fell 5% as fears grow that Beijing will move to raise the discount rate again, also the economic relationship between the US and China is strained. The Asian stock markets were the driving force for the global bull run now these markets are under very real pressure. Moving on to the S&P e mini Futures, they couldn't hold the breakout over resistance at 1207. Until Friday the pullback had been orderly, the increased volume on selling suggests, institutions were involved. A pullback to the 21 day exponential moving average was due in this overbought market, however the fact that e minis closed on their lows amidst panic selling is a concern. The question is will the 21 day ema currently at 1192 approx hold this week. Enjoy the rest of your weekend guys. If you would like to continue learning how to trade profitably  register here for a 14 day guest pass to the GT members