Chinese Credit Crunch intensifying, China Halt All Bank Transfers
It appears that China's Credit Crunch Liquidity Crisis ahead of this week impending default of Credit Equals Gold wealth product is intensifying, as the Chinese Central Bank has just ordered all domestic commercial banks to halt all renminbi bank transfers for 3 days, and renminbi foreign currency conversion for 9 days.
Bank-run fears continue - HSBC restricts large cash withdrawals
Global equity market took a beating last Friday as global credit crunch fears intensifies. Without substantial liquidity injection from central banks around the world the stock market is going to tank even harder, with or without a pause.
Key Support Price Level to watch for on Monday is 3530 for NQ, 1780 for ES, 15,800 for YM.
-- Holding above support implies sideways consolidation pause day pattern or a short-covering rally as short sellers take profit.
-- Breaking below key support price level will trigger another round of algorithm short-selling.
-- Potential support for NQ below 3530 are: 3520, 3495, 3450, 3400
-- Potential support for ES below 1780 are: 1765 and 1720 as stronger support level.
-- Potential support for YM is 15,500
