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This “multi-year narrowing pattern” is being put to the extremes, as the bottom support line of the wedge looks to be breaking at (1).
Game Plan…The impact could be large! Keep a close eye on FXI and the Emerging countries in the next few weeks!
Carl…Thanks for the great comment and observation.
Dennis…great question. A slow down in China, could ripple out to the global market place. Could the Shanghai breakdown be part of the reason high yields are breaking support and govt bond are breaking resistance? I believe this is one of the many ripple effects.
Another one could be found in the link below.
I’ve been watching the Shanghai flag since January. Now that the pattern has finally broken to the downside, I’d love to read an update as to the implications and your trading prognosis.
Hi Chris, right this is a breakdown, but on logarythmic chart only at the moment, still inside the triangle in linear at least on my charting program. For sure to be followed very closely !!!