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One week ago today the Power of the Pattern shared the following conditions were in play for hottest index on the planet (Shanghai index) The Shanghai index was up 40% in 90-Days, formed a bearish wick as it was facing channel resistance, at its Fibonacci 38% resistance level with momentum at its highest level in years (see post here) This cluster of resistance presented a price point where this white hot index could peak.
Today wasn’t the best of days for this white hot index lost over 7% of its value and it is breaking below rising support of the bearish rising wedge.
If this white hot index cools off could it end up impacting other global markets? Humbly I don’t know! During the time the Shanghai index was up 40% in 90-days, the S&P 500 was up very little (3.9%).
I believe it is very much worth keeping close tabs on the hottest stock market in the world to see if its price action ends up impacting other key global stock markets.
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