Scalper1 News
Market averages got clobbered right out of the starting gate on the first trading day of the New Year then could barely manage any sort of rally attempt until the last half hour. Indices consequently clawed their way back finishing at their intraday highs but still down on higher volume. Meanwhile a number of big-stock leaders blew through and gapped down below their 50-day moving averages, including names like NFLX, AMZN, GOOGL, FB, PANW, etc. With China’s markets halted on Monday when the Shanghai Composite tripped its 7% circuit breaker, Tuesday’s action remained volatile with the index finishing fractionally lower but off as much as more than 3% during the trading day. As we mentioned in yesterday’s report, a surprise cash injection from Chinaâs central bank would be unsurprising. That said, the bank infused its markets with about $20 billion but this failed to calm investorsâ nerves. Chinese investors remain concerned about Friday when the ban on selling by large stakeholders is expected to end. Analysts estimate the ban, one of the many bailout measures introduced during the summer stock crash in China, could cause large shareholders to sell as much as $152.96 billion in stock. This concern was one of the reasons for Monday’s selloff in China. Futures are currently down around 0.3% at the time of this writing. Scalper1 News
Scalper1 News