The Shanghai index was one of the weaker global stock markets in 2012, trailing the S&P 500 by 10% on the year.  Of late the Shanghai index hit a multi-year support line and has been acting like a bungee cord, bouncing off this line!

Over the past 30 days, this index has gained more than 15%, out performing the 500 index by a large margin (see inset above).  While the media has been focused on the “Cliff news,” they might be missing the bigger story, in that China is bouncing off of support, which could be a positive message from a macro perspective.



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