The Shanghai Index has recently begun to rally, after remaining in a large sideways congestion zone since mid-2015, as shown on the following Daily chart.
It's currently trading under the bullish influence of a moving average Golden Cross formation, with the RSI, MACD and PMO technical indicators making a corresponding higher swing high. However, the MACD and PMO have recently made a bearish crossover "SELL" signal...if the RSI drops and holds below the 50 level, we may see price drop and retest near-term support at 3250, or fall to, potentially 3000, or lower.
According to the Weekly chart below, longer-term support sits around the 23.6% Fib retracement level of 3237 and 40% Fib retracement resistance is at 3608, but, this index faces longer-term major price resistance at 3500 before that level.
Momentum and rate of change have been flat on this longer term time frame, so I'm unconvinced of a sustainable bullish bias...instead, we may see further volatile price swings until direction becomes clearer on this index.
Furthermore, any strength (that may have been contemplated by foreign investors) may now be in jeopardy, as Standard & Poor's downgraded China's credit rating to A+ from AA- today.
Added to that volatility headwind, are new sanctions issued today (Thursday) by China's Central Bank and the United States in regard to North Korea.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC VENTS...
* Fri. Oct. 4 @ 8:30 am ET ~ Employment Data
* Wed. Oct. 9 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Thurs. Oct. 10 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. Oct. 16 @ 8:30 am ET ~ Core Retail Sales & Retail Sales
* Wed. Oct. 16 @ 2:00 pm ET ~ Beige Book Report
* Wed. Oct. 30 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
*** Click here for link to Economic Calendars for all upcoming events
NOTABLE POSTS WITH IMPORTANT UPDATES...
* A "Joe Biden" Stock Market...plus the latest allegations re: Trump/Foreign Leader/Ukraine: will they boomerang back on Democrats and Joe Biden?