SSEC Shanghai Index (China) Weekly Chart; Bear Market

The Shanghai slips into a bear market. Price topped out in late January with other global markets at 3570-ish. A -20% drop off the top is 714 points or the 2856 level so China is in a bear market. The PBOC (China's central bank) has supported the 3K level the last few years so they will step in again and boost the index.The central bankers are the market.

Price fell out of the blue upward-sloping channel and then came up for the back kiss in March which then resulted in collapse and failure with the China bears cheering. Price then fell below the 200-week MA at 3165-ish in April, then back kissed this important moving average in May resulting in another successful bear test and collapse in price into a -10% correction and more.

The green lines show positive divergence across all indicators sans the MACD line. The RSI and stochastics are oversold agreeable to a bounce. Thus, the SSEC will likely bounce for a week or two to honor the possie d, but then price will retreat again to honor the weak and bleak outlook of the MACD line. At that time, say 2 or 3 weeks out, the MACD should turn possie d and then a more firm bounce will occur for a few weeks.

The ADX purple box shows that the downtrend is very strong. The monthly chart is trying to stabilize but exhibits a weak and bleak RSI so the SSEC will likely explore additional lows in the 2480-2700 range in the September-October time period. Of course the PBOC will be in the stock and currency markets trying to manipulate price like all the other filthy central bankers around the world. 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.