As can be seen on the 3-Year Weekly chart below, price almost reached the 2300 level, but failed to hold and breached the 2000 level last week. We may see price fluctuate in between 2000 and 2300 until a solid break and hold is made one way or the other for awhile. Furthermore, we'll need to see the RSI break and hold above 50 and the MACD cross over and hold above the zero level to support a break to the upside. Until that occurs, this index is, basically, trendless and traders/investors are non-committal.
Additionally, as I mentioned in that post, one gauge of China's strength going forward lies in the AUD/CAD forex pair.
As can be shown on the following 3-Year Daily chart, price did breach the 93.00 level, but bounced and is now caught up in between the 50 and 200 smas. Should we see a clear break and hold above the 200 sma and the 0.9900 level (but a more-convincing 1.00 level), and if the RSI can regain and hold above the 50 level, we may see the Shanghai Index follow suit...one to watch if you're trading the Shanghai Index.
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