IMF china report.

China has room to launch another stimulus aimed at increasing domestic consumption and swinging the economy away from its dependence on exports, the International Monetary Fund said on Wednesday.

It also said unemployment would probably rise as China tried to rebalance the economy and jobs were lost in export sectors. However “over a longer horizon, the employment gains from rebalancing towards domestic consumption and an increase in service sector employment should outweigh short-term losses”.

The economic assessment is meant to be issued annually but had been blocked by China until now over fears about how the IMF would label its currency, which some complain is kept unfairly low to make exports more competitive.

International financial institutions expect China to reap quicker trade benefits from a global upturn later this year that will be led by emerging economies.
Meanwhile, China, which notched up year-on-year growth of nearly 8 per cent in the second quarter, remains the top destination for future foreign direct investment (FDI), according to a survey by the United Nations Conference on Trade and Development released on Wednesday. The 240 multinationals that responded to the questionnaire put the US in second place, followed by India, Brazil and Russia.

Tracking the Dow on Wednesday,22/07/09
9:30am:--Pivot day of week,a mild gap-down 30.0 points followed by bullish gap filling.

Morgan Stanley said it lost more than $1.2 billion in the second quarter as it took charges to cover continuing losses in its real estate investments and its repayment of government bailout money.

10:30am:--After finding its high,(+33.86 points),bears pulled it back to MAV line and slightly below it.

General Motors Co., which has received $50 billion in U.S. government aid and emerged from bankruptcy protection on July 10, said it sold 1.94 million vehicles worldwide in the April-to-June period, despite a 32 percent decline in North America.

11:30am:--A technical rebound failed to test earlier high and pullback to MAV line.

Crude futures settled down 21 cents at $65.40 a barrel .A mix of earnings reports drove trading.
12:30noon:--End of first session saw the bulls lifting the index to another double top with hangman.

The U.S. dollar hovered close to a seven-week low, with traders basically tracking equity markets as a gauge of investor penchant for risk taking.The relationship between the dollar and global equities has been strong since March, when investors began to cut their holdings of cash and other safe havens and increased exposure to stocks and other relatively risky assets.

1:30pm:--A spike down for the third attempt to break the MAV line,this time with tri-star doji spin to do the job.

2:30pm:--Bearish harami with hammer.
3:30pm:--Bullish inverted hammer at a new day's low.

4:00pm:--Bullish harami.
The 3 white ascending soldiers have finally reached the peak and needs a breather to plan the next forward strategy.

It's the new high of the month and the overall candlestick for the month remains bullish.

Wednesday's pullback is just within the white body of Tuesday and retraced leaving a small shadow calling it a bearish spin.

Any pullback will be right to the bull-pivot and then rebound again.