China Back in News with Stimulus Rumors as Ratio of the SPX vs. SSEC at Major Long-Term Resistance
One of the more compelling set-ups I’ve presented in a while when you think about it in the context of what we know / think we know and the recent rumors of a new Chinese stimulus plan! The chart below…...
What does the SSEC Continue to See that Global Mining Plays Don’t?
We had a post the other day that suggested price action in the SSEC doesn’t carry much informational content value anymore. To some degree, YTD results justify this view with the SPX up ~12% and the SSEC down ~7%. However, what if this view…
SSEC Just Broke Below Major Support Dating Back to 1994
With last night’s ~175 bps decline to start the week, the SSEC has now decisively broken below a nearly 20 year support line (1) dating back to 1994, in the chart below. Incredibly, the index now stands ~66% off its…
Shanghai Composite Faces 20 Year Support Line; Would a Break Below Even be Relevant?
Chart below shows the SSEC is approaching 20-year support line (1). Presumably this line is very important from a technical standpoint. One would, upon first glance, assume that a break below it would usher in very bad things for the…...
Downside in SSEC Continues to Accelerate; Breakdown from Pennant Pattern at Hand
Last night the Shanghai Composite (SSEC) shed nearly 240 bps on the back of various Chinese macro data points. This comes on the heels of other recent weakness in the SSEC – on 6/25 we noted that the index had witnessed two straight…
Downside Accelerating in the Shanghai Composite; About to Break Down Technically?
In its last two trading sessions the Shanghai Composite has shed 140 and 160 bps, respectively. At the same time the index sits on trend-line (1) support dating back to 2006 within the context of a broader pennant/flag consolidation pattern…...