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Back in May the Shanghai and other key Asian index’s were up against resistance, at the top of a flag pattern in the chart below and the Power of the Pattern suggested…”if long investors were to harvest/sell, if aggressive go short/buy the 2X inverse ETF!” (see post here).
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What took place in the following 6 months? Resistance held and the Shanghai index declined over 20% and the worlds markets/herd followed along!
After this decline the Shanghai created a crossroads of support and was doing its best to “hang on” at this crossroads (see post here)
Below is an update to the Shanghai pattern with overlays of the S&P 500 and the CRX Commodity index…
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Key world markets/herd seem to continue to follow the Shanghai index!
Support remains in place for the Shanghai index…A rally off of support in the Shanghai index should be positive for the worlds markets as they most likely will follow, again!
The worlds markets need this support line to hold, because if not, the worlds markets will go down with the Shanghai!!! Should the CRX index break resistance, it could help keep the Shanghai above support.
Ed…Thanks for the kind words and your continued viewership.
I believe the currencies are really important, always have and always will, yet the Shanghai has a darn good batting record for suggesting stock and commodity moves. I have been sharing the Shanghai index all year and actually tracking the “Power of the Pattern” with this index has been of a ton more help than the currencies.
Per the premium membership, shoot me an email and I will get back to you Ed. I am embarressed to say I have a ton of requests like this to get back too. I have hired new personal to help me with these requests, per being overwhelmed as the business continues to grow at a fast pace. All premium info requests will be answered by Wednesday of next week, that is when new staff will be up and running.
All the best,
Chris, again love the charts and analysis. Clearly shows the Shanghai as a leading indicator. Question I have is which indicator is strongest on the US/global markets now? FXE/Euro vs. Shanghai?? A look at the Euro/SP500 (FXE/SPY) is showing a 0.84 correlation last few months, with the FXE testing resistance around 134 (134.21 +0.10). If FXE continues push higher but Shanghai continues to push through support you show (down to 2360 on Fri close), which of these do you see pulling the markets? – who is stronger world market “influencer”??
(P.S. premium member info please??)