May 30 (Bloomberg) -- China's stocks dropped from a record after the government tripled the tax on securities transactions, halting a rally that's made the shares Asia's most expensive.
This is creating a downdraft in US equity futures. Eventually, money could seek refuge in the US markets, still the cheapest out there (...scary), but watch overnight support, mainly NQ 1899.50/1902. Relative to weekly pivots, YM is weaker than NQ. However, this could change in the overnight session. A China sell-off is what trigered the February correction, so expect some real fear overnight.
Gold is up. Switching to August contract, gold bulls would like to see a move above 663.70, 50% 2007 (657.80 for the June contract).
This is creating a downdraft in US equity futures. Eventually, money could seek refuge in the US markets, still the cheapest out there (...scary), but watch overnight support, mainly NQ 1899.50/1902. Relative to weekly pivots, YM is weaker than NQ. However, this could change in the overnight session. A China sell-off is what trigered the February correction, so expect some real fear overnight.
Gold is up. Switching to August contract, gold bulls would like to see a move above 663.70, 50% 2007 (657.80 for the June contract).
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on Tuesday, May 29, 2007 at 5/29/2007 10:25:00 PM.
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