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Trendlines under pressure - markets set to hit an air pocket

If you draw a trend line connecting the low on 6th March with the low days in July you see that the S&P broke down through this line on Wednesday but sprung back above it on Thursday. So what to conclude? Well Shanghai broke a similar trend back in August, the Nikkei did the same late September, the Hang Seng faked down in early October but has now confirmed that break. In Europe the Dax is just above the trend line and the FTSE well above. Your pay your money and take your choice of course, but I'm going to plump for Asian leadership and say that the increased correlation between markets experienced in the last few days is symptomatic of a market trading on air and ripe for a significant drop