As we posted yesterday, the S&P500 appears to be working off an overbought condition by trading in a relatively tight range between 1306 and 1333. A break of 1306 could take the index back to 1277, which is key support. The S&P500 is up 4.67 percent year-to-date.
Monday will interesting as the Shanghai Composite begins trading after a week holiday celebrating the Year of the Dragon. The Hang Seng was up 1.95% for the shortened week after traders returned on Thursday. Can the Shanghai break out of its downward channel?
We added to some Korea, EWY, over the weekend as a beta play in the event that it does. Stay tuned.
(click here if charts are not observable)