Asian Markets Could Be Sending Warning Signals

This morning, the S&P 500 Index e-mini futures (ES-U3) are trading lower by 3.00 points to 1683.50 per contract. Often, on a Monday trading session the volume will be very light and that can support the major stock indexes, but the Asian stock indexes are signaling trouble ahead. Last night, the important Nikkei Stock Average finished the trading day lower by 3.30 percent. In China, the important Shanghai Composite finished the session lower by 1.70 percent. This tells us that the leading Japanese and Chinese ADR’s could be weak if the U.S. markets decline. The problems out of Asia are really not being reported by the mainstream media. Investors in the United States are very complacent at this time, but remember, the last crisis in 2007, and 2008 began when the Shanghai Composite started to rollover.