While the SSEC literally exploded during 2007 compared with the gains made by the SPX, and made an anaemic attempt in 2015, it's, essentially, gone nowhere since mid-2015.
If this is a harbinger of things to come, I'd say that China is in for a rough ride over the next few years...particularly in light of the current trade war with the U.S. And, it's time for them to negotiate in good faith, as Senator Grassley has tweeted.
You can see from my post of May 6 that major support sits at 2500 for the SSEC. If it blows through that level, watch out below!
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| Source: ZeroHedge.com |
World markets closed the day massively in the red on Monday...possibly related to this trade escalation and perhaps other world tensions, e.g., Iran, Venezuela, North Korea, etc., as well as slowing world economies. We'll see how overnight trading fares in China tonight.
P.S. Is anybody besides me getting tired of President Trump's incessant "good-cop bad-cop" tweets/messages regarding trade talks with China? All you have to do is look at this 60 min chart of the SPX to figure out where and when after-hours "bad-cop" tweets/messages were let loose by either him or his negotiators, and when "good-cop" tweets/messages were released during market hours. It's getting silly...and predictable.
And, isn't it about time that he finally outlined a comprehensive trade policy that, not only includes China, but other world countries, as well? It's long overdue, in my opinion!
