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When it comes to population, China represents one sixth of the worlds population. Does size matter? At this time it appears the Shanghai index is testing the underside of this flag/pennant pattern at (1) above.
The Emerging markets ETF (EEM) has lagged the U.S. over the past few years, yet has done really well of late, as its rallied from the bottom of its flag/pennant pattern.
Even though the Shanghai & Emerging markets haven’t done near as well over the past few years as the United States and Europe, what direction the Shanghai takes from here could tell us a great deal about world wide growth or lack of.
Keeping a close on this whale and Emerging markets right here!