Funda-MENTALs for the Short-Term?!

The futility of buying or selling stocks in the short-term, on fundamental news/data, was laid bare by today's Shanghai market action!

THE NEWS:

"China Government Moves to Curb Lending
China has tightened limits on mortgage lending and plans to roll out a new tax on home sales, acting once again to cool a property market that some fear is frothing into a bubble. The required downpayment for a first home purchases rises to 30 percent, up from 20 percent, while purchases of second homes will require a 50 percent downpayment, up from 40 percent. Loans for purchases of third homes are banned, said the announcement on the government's website."

MARKET REACTION:

 Up 1.72%!

And just a few weeks ago, this same market would've dived on such news.

China market will be closed for the whole next week, as the population there does its' yearly mass migration. Traders might wanna sit out, and wait for a break above 2700 before going long.

All the best!

(Video) Nifty: Expect New Highs by Year End.

In May, i posted this video interview of Mark Galasiewski , who is the editor of Asia Pacific Financial Forecast, at Elliott Wave International. He had then called for Nifty 6000. And now with Nifty springing above that level, here's another of his interviews with ET:

Mark Galasiewski Interview, Sept 23

Enjoy!

Hang Seng Index Bullish Breakout

Hang Seng Index broke above a significant downtrendline as indicated in previous posts. Due for a backtest of the breakout in the short-term, which if successful, points towards a bullish medium-term outlook. Immediate resistance is previous high of 23000. Further upside levels are indicated on the chart.

S&P500 Hourly: Negative Divergence

SPX setting up a negative divergence with RSI, implying a pullback is due in the very short-term. I would wait for the RSI to hit 70 before initiating a day-trade, with a stop just above last high. Supports at 1130 & 1123.

S&P500: Trendline Watch

Last post on 5-Sep, called for a move up into the 1130-1150 range on the SPX, followed by a U-turn. We're there now, and it remains to be seen, if there's gonna be an impulsive decline to follow. The likely location for the reversal is around 1150, or the upper line of the blue channel. A move back below 1130 would be the first step. The potential spoiler to this scenario is the rough Inverse H&S formation that is just breaking out.

(Alternate View: the A-B-C was completed in Jul, and SPX has just embarked on a new uptrend.)

Let's see if the Sept Equinox can spoil the party for the Bulls. All the best!