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The Shanghai Index has rallied off of falling channel support, gaining almost 17% in the last 6 weeks (S&P 500 Up 3% in the same time frame). This rally has taken this important index from the bottom a falling channel up to the top of its channel at (3) in the chart above.
This resistance line for the Shanghai Index becomes a little more important due to….
Banks Resistance (see post here),
Apple’s descending triangle (see post here)
500 index and Yields at resistance (see post here).
A breakout of resistance by the above mentioned would be very positive risk assets, should it take place. For Risk asset returns in 2013 to be rewarding like they were in 2012, these resistance lines need to be taken out!
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