Thursday, July 05, 2007

Has The Shanghai Index Made A Double Top?



The other day when the Shanghai index posted its first close below its 50 day moving average, I thought it was significant so I included that chart in my Charts Of Interest post last week.

Since then the index has moved lower and appears to be picking up momentum on the downside.

If you look at the chart it looks as if the Shanghai index is carving out a double top formation. If that's the case, this market can really begin to move lower in the weeks to come.

I am NOT looking to short this market at all. Picking tops is NOT how I make money as a trader. The reason I've been commenting lately on the Shanghai index is so that all of you will be aware that this market may be rolling over and it could impact our market if the move is large enough. Let's keep an eye on it!

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