My post of October 11 mentioned that China’s Shanghai Index broke below a major monthly swing low level of 2638.30 and that it could be headed for its next major support level at 2260, or lower.
Since then, price has fluctuated in both directions and has been attempting to stabilize, but remains just below that former swing low…a potential major inflection point.
Overlayed on all of the following three charts of the USD/CNY forex pair is the Shanghai Index (shown in pink). After price peaked in January of this year, it began an 1,140 point decline, in divergence with a rally in the USD/CNY. (more…)


