Shanghai Stock Exchange Composite at Long-Term Crossroads
Chris Kimble | Mar 22, 2024 15:22
When the Chinese economy or stock markets are signaling an important turn or good/bad signal, the rest of the world needs to listen.
Today, we look at a long-term chart of the important Chinese stock market index, the Shanghai Composite.
Could the Chinese markets be nearing an important inflection point?
As you can see, the Shanghai Stock Exchange Composite (SSEC) broke down through the enormous pennant pattern. This was a bearish sell signal.
And now the SSEC is backtesting the underside of the triangle in a key test of resistance at (1). If the index can rally back up into the triangle and beyond, it would be bullish.
BUT, if the major Chinese index fails here and turns lower, then it would be very bearish.
What this index does at (1) will send an important message to stocks globally. Stay tuned.
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