The S&P 500 appears to be approaching a technical inflection point as we approach key fundamental catalysts on the horizon, including Q3 corporate earnings, the U.S. Presidential election, and monetary policy decisions from both the ECB and the U.S. Fed in the coming months.
The Chinese Yuan has quietly moved to multi-year lows with seemingly little fanfare. The growing stress within Chian's over-leveraged banking system, and continued capital flight (www.wsj.com) suggests the pressure on China's currency will continue. The last two times the currency weakened significantly were August 2015 and January-February 2016- not good times...
Disappointing industrial earnings, weak Chinese trade data, significant slowdown in Singaporean GDP. Looks like we may be in the midst of a false break-out and head and shoulders topping pattern in the S&P 500, confirmed by weak global growth.
