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The 18-month decline in the Shanghai index brought it down to six-year support line (1) recently. While at this line the index might be forming a “Bullish inverse Head & Shoulders” pattern at (2).
The global growth picture would benefit “IF” this pattern read is correct!
The worlds markets NEED this index to push higher from here. A break of support line (1) would reflect the bullish pattern failed and send a signal of slower global growth is at hand!
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