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The Shanghai Index and CRB (Commodity Index) have both formed “Bearish Descending Triangle” patterns. Using history as a guide, the majority of the time this pattern suggests lower prices are ahead for both of these.
What would lower Shanghai & Commodity index prices suggest about the macro economy?
Any thoughts on what assets you would want to avoid and what to own if this happens???
Joe Friday…If the support line (2) is broken in the above charts, odds increase that sellers will step in and drive both of these key index’s much lower!