Shanghai Composite

19 Sep 2018 ‚óŹ 04:23 AM

The Shanghai index has broken out of the blue wedge I have drawn on this chart as I write. So US is the master of telling you what it is going to do then letting you absorb it by delaying the announcement and then doing it slowly. By then it is discounted and the market changes trend on the actual news of the event. The FED has used this method during QE/QT and raising rates, and we saw a repeat in the trade war news. So China on this chart was in wave C and C=A was achieved and after the news a breakout from the wedge means China has bottomed for now and will rally to retrace in an X wave or 4th wave back to the July high at least to start with. This recent bottom is also near the 2016 lows and so was a long term support. Till new evidence develops the Shanghai composite may trend higher near term and is in bounce mode.

shanghai 190918

Comments (0)


Latest Articles