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China breaks support while Europe, NDX stabilize- US Dollar now at resistance

US equities mostly flat-lined this am, with gains being led mostly by NASDAQ which is besting SPX, DJIA on Technology gains and Healthcare, with stocks like AGN, MCK, CERN, BXLT, REGN, all being up 2.5% or more.  Europe has maintained most of early strength, while China's decline looks more serious, technically and negative-Breadth is fractionally negative, and volume flowing at around a 2/1 ratio into Declining vs advancing stocks.   The US Dollar's 5th straight day of gains is causing some weakness in the commodities space, with Gold down more than 2% while WTI has given up all of its early gains, when late last night it hit $46 and now down to just above $44.  Overall, still tough to make too much of this bounce attempt for S&P, we've seen about a 30 point gain from last Friday's lows, while the NASDAQ and Europe are in much better shape- (SX5E, and DAX. )  Meanwhile, bonds have gained ground, with German bunds hovering around 13 bps and pullbacks in TNX to down below 1.76-   The key themesfor today are 1) China Breakdown 2) Europe, NASDAQ stabilization 3) US Dollar rally reaches 5 days, which now seems to be at important levels4) Energy reversal 5) Healthcare's ability to hold key support

China's breakdown of April lows looks to be a big deal technically as this level held since mid-March

WTI Crude quickly reversed from positive to negative this am, after having tested the upper end of this range near 46-Still tough to sell, despite all the negative news and prices likely try to find some support here

 

Healthcare's reversal happened near an important intersection of 2 different trends, which makes today a bit more bullish on its ability to pull out of this

Move to multi-day highs in NDX and in Europe's DAX, SX5E are thought to be positives;  However, China's breakdown definitely a negative- Most counts had not suggested last Friday's lows were THE lows, so today's minor pullback isn't a surprise, but thus far holding up in pretty resilient fashion.   IF S&P and DJIA can join Europe and NDX and bond yields start creeping up, that would give some importance to the rally.