Yesterday we talked about how markets sometimes go from reality to fantasy, and clearly today's news from China was more a reality check for the markets. Logically, you cannot have a recession in Europe and the US economy barely limping along and have Chinese exports jump off the charts.
Europe and the United States are the principal customers for China to sell its goods. If Europe and the US are not buying because of economic conditions, how can China keep growing its economy at a record pace?
Today could mark the start of a reality check for the markets. How the markets close today will give us more clues as to whether or not the market is putting in a top or biding its time to move higher.
How the major markets closed last Friday: S&P 500 - $1,390.99, DOW - $13,906.17, NASDAQ - $2,967.15. Should we close below these levels today, we believe that the market could once again reflect reality and head lower.
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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