There is only one word for today's events and that is... madness!! If you were holding for the long term I am sorry and I hope that your stop losses were not too far out, and your take profits were.

China has dominated headlines as of late, as the Peoples Bank of China continues to try and pour water on an inferno that is burning at home with a bubble like credit/stock/housing market. The only thing that has been holding back market action has been the PBOC which has tried to defend the market as much as possible. Is this an overreaction for the market? Yes it most certainly looks like one as it seems to be a serious lack of liquidity which has caused problems for today. The PBOC has a lot of fire power left in its arsenal, and it can easily prop up markets if it chooses to do so.

Oil markets are looking incredibly bearish after the events of today, even with a weaker USD. The reason for this has been for some time that the oil demand is driven by economic growth, and currently there is worries that future forecasts are unlikely to be met after today's shocker. At present we are seeing oil holding up at a major support level at 38.05, certainly there is the possibility of further moves lower and I would not be surprised to see it dip even lower at present.

I am targeting lower lows and the $30.00 a barrel mark is certainly a reality check for many, in fact I would expect to see it dip below that if given half a chance. Certainly the bears are in control and I would like to play of moving averages in the coming days when looking for dynamic support and resistance levels.

Silver has been looking deadly for the majority of traders (it's worth noting that metals were mostly untouched compared to equities today) as it slipped down the charts. Now with the large fall I would expect to see support levels at 14.356 look to be tested again, certainly in the coming days if this uncertainty persists. A 3rd touch of the support level may not give me much more confidence that the bulls can keep this one afloat and I could easily see it push back down into the lower 14.00's.

The USDCAD is also looking like very bullish on the charts at present; with the drop in oil prices the Canadian economy has been suffering heavily and the USD despite its weakness continues to reign supreme over the CAD. Looking on the charts at the volatile pair it's clear we are pushing higher against resistance levels at 1.3386 and we could soon see a massive test and I would not be surprised to see a strong retraction of here onto the bullish trend line that has been in play for some time now.

Lastly, the NZDUSD is looking more bearish than ever on the charts. I would expect to see further testing of the low 60 levels at this rate, if not a rejection. But, with milk prices falling it certainly seems more than plausible we will see markets up the pressure on this pair. 

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