SSEC Shanghai Index Weekly Chart Approaches Bear Market

China has seen better days.  Look at the spectacular rally in 2006-2007 when the wine flowed like water. Then the crash in October 2007 forward, this is also the top in the U.S. markets. China bottomed in late 2008 as the U.S. stock market was crashing. The U.S. markets bottomed in March 2009 when QE1 was announced. If China is leading the parade, the recent action does not show a pretty path forward for world markets.  The recent down move from 2475-ish to 2000-ish is a near 20% down move which is considered to be a bear market.  The 1980 level would lock in the 20%.  There are gaps from early 2009 that are of interest shown by the neon green circle. Current price levels are at 2009 levels. The indicators show positive divergence so this signals a basing and turn around coming as the weeks play out. The sideways triangle verifies the overall sideways movement in price. A move thru 1800-2500 may be on tap for the considerable future. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.