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13 months ago the Power of the Pattern reflected that the Shanghai index was breaking below a multi-year flag/pennant pattern at (1) in the chart above, reflecting that global softness/contraction should take place (See post here).  The portfolio construction message per the breakdown a year ago…reduce risk exposure!!!

Now this key index is attempting to break below another flag/pennant/support line at (2) in the above chart.

 

 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past