Pages

Sunday, December 20, 2009

CHINA'S UPTREND IS IN DANGER


This week's chart shows it's tough going in China right now...

China's stock market turned in an extraordinary performance this year. The benchmark Shanghai Composite Index is up 75%.

But as our chart shows, the index has struggled since reaching a peak in August. It has tried to best its August high twice in the past few months, only to fail each time. This is a bearish development that shows buyers simply don't have much power anymore.

Keep an eye on this index. It's one of the world's best gauges for how risky assets are performing. Right now, it's sporting a bearish "I tried to reach my old high, but failed," pattern.

No comments:

THE MONEY MARKET

FRIENDS