The overnight auction in the SP500 futures, $ES_F, held up well after China Interest Rate cuts. Certainly a more stable auction than Sunday and Monday. However, the daily wedge pattern on $ES_F has broken, and today looks to focus the market’s ability to merely hold the levels from yesterday’s close. We discussed this market move in the Traderfy Trend Aug 24 2015 at length before the market open.
Bloomberg Business authored a quality article that covers the details about the China interest rate cuts. the report:
The one-year lending rate will drop by 25 basis points to 4.6 percent effective Wednesday, the Beijing-based People’s Bank of China said on its website Tuesday, while the one-year deposit rate will fall a quarter of a percentage point to 1.75 percent. The required reserve ratio will be lowered by 50 basis points for all banks to cover funding gaps, it said.
BREAKING: China cuts interest rate after days of stock market declineshttp://bloom.bg/1hDUUXQ