Stocks in Europe and US rally after global central banks (Europe, US, Japan, British Canada ....... ) announced coordinated action to shore up liquidity in the financial system by reducing their borrowing rates. Market sentiment was also lifted by China announcement to reduce bank reserve levels. This is the first time in three years China eased her monetary policy. It is possible that China has started to feel nervous about the European debt problems.
In fact China Shanghai market has been drooping in the last 28 months since its July 2009 high of 3412 points. SSEC closed today session at 2333 for a 31% drop since July 2009.
Is this the turning point for SSEC? It is possible that China stocks may go in a different direction.
For US and Europe, the major wave C remains.
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