On Monday, All Eyes Will Be On The Shanghai Composite

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 per cent 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)

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