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While trade tensions between China and the States are getting a good deal of attention of late, one might want to keep a close eye on the price action of the SSE Composite (Shanghai Index) at this time.

It has created several lows and highs over the past 13-years inside of rising channel (1). It hit the top of the channel in January at (2) and it stopped on a dime and started turning lower. The broad markets in the states peaked around the same time.

The weakness of late now has the SSE index testing the bottom of rising support channel (1) at (3).

If this support would happen to break, it would send a cautionary message to stocks in China and in the States.

What the index does at this support line, looks to be very important to stocks on a global basis.