I wrote about China's Shanghai Index (SSEC) on August 22, 2023, as shown below.
I noted that, since March of 2007, any attempts to rise and stay above 3000 resulted in price being blown off numerous times to fall back into what I called a 'Chaos Zone' between 2000 and 3000.
It is currently trading above above this zone, after breaking above long-term intersecting trendlines, which offers a level of support around 3100, as shown on the monthly chart below.
Since early 2016, price has, essentially, held above 2700, which offers near-term major support.
However, the area in which it now sits is what I've dubbed as "Froth," inasmuch as it has never risen and held its gains since it ventured into it in early 2007...before the infamous 2008 U.S./Global Financial Crisis.
China has been around for over 4,000 years and has found ways to remain flexible and resilient throughout its long history...seemingly focusing on the 'long game' and its quest for 'win-win' solutions to problems.
In that context, I doubt whether it will crumble in the next four years because of President Trump's global tariff war and his 'I-win-you-lose' strategy. President Xi has been busy this week making trade deals with multiple Asian countries to mitigate the effects of Trump's tariffs. No doubt, he will continue to seek other alternatives and opportunities, as well.
So, should the SSEC hold above 3100, we may see it continue to rise. However, in the current volatile global environment, we'll see if it can, at least, remain above 2700...for the next four years (until the next U.S. federal election and change of President).
