China Rumblings into Month End

Protests in China over Covid lockdowns likely to drive the market narrative as we head into month end with the US back from holidays today following a half day holiday trading session Friday which saw the DOW exceed the August high closing at 34347 . Given the low of 28850 in late October this has been a stunning run and one prone to profit taking

FTSE 100 signals a softer open down just 30 points from Friday’s close of 7487 and falling short of the 7500 resistance level.

The FTSE250 has been the recovery index over the past month up 12% and clearing the 200MA for the first time since early ’22 as highlighted last Thursday although the continued divergence in the RSI may be a tell on some selling into month end

Oil has dropped further and not sits around the $81 level and key support back to the start of ‘22

Gold has stayed resilient around the $1752 level and is following its 8EMA tightly : any haven bids to the dollar may impact this although the yellow metal has been showing increasing strength of late and may be benefiting from bitcoin’s weakness as an alternative asset

Copper gapped lower this morning down almost 2% on the China news and may signal selling in the commodities complex today

(click on any of the images to expand)