A Tale Of Two Markets: Shanghai & S&P 500

The Shanghai turned down last evening after opening up and looks to continue the downtrend.  That is one ugly chart.

Meanwhile, the S&P500 looks like it really wants to resolve its wedge formation to the upside.  After a year of head fakes,  bull and bear traps, traders may have lost a little trust in the charts, however.   A good employment number on Friday may provide a nice catalyst for some resolution.

Keep the Shanghai on the radar this year.  If it continues down and does not respond to a policy response, think tail risk.


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