A traditional year end curbs.

The chinese currency,renminbi(yuan) with a portrait of Chairman Mao Tze Tung


The latest China bank lending curbs ripple through economy as well as financial markets throughout the world.
Some bankers report that they are recalling loans, while others are turning down new requests from borrowers following firm instructions from the People's Bank of China and the China Banking Regulatory Commission.
The crackdown which starts in this very last month of the chinese lunar year of the "ox",must be the chinese style of year end financial closing and unwinding stocks position,so next time watchout for this communist style of book closing.We are going to usher the year of the "drunken tigers"in another three weeks time.
Banks in China typically lend at a cracking pace in the first quarter, partly so they have more assets that will yield income throughout the year and partly because they never know when the next administrative clampdown on credit might come.
As well as discouraging property lending, regulators are taking particular aim at industries that guzzle energy and belch pollution.
The Dow,,Wednesday 27/01/10 is 17market days to idnex futures expiry.
The Chinese New Year falls on 14/02/10(Year of the lame Asian tiger)

9:30am:--Bearish 50 points gap down.
10:30am:--After filling opening gap,a big pullback to session low.
11:30am:--Retracement to bear pivot resistance failed.
12:30noon:--Weak morning session holding below bear pivot.
1:30pm:--A bullish engulfing sign.
2:30pm:--Bear resistance breakout.
3:30pm:--MAV resistance breakout.
4:00pm:--Inverted bull.

Th super tri-stars dojis are awaiting the Federal Open Market Committee (FOMC) statement and a State of the Union address from President Obama .
The first FOMC policy statement of the new year came on the eve of a vote to put Ben Bernanke back into the seat of Fed Chairman. To little surprise the statement indicated that economic activity continues to strengthen and that the deterioration in the labor market is abating. The FOMC also opted to keep the federal funds rate at 0.00% to 0.25% and will maintain exceptionally low levels for an extended period of time.