China is on the verge of breaking out from its pattern of consolidation, at least according to the monthly chart book from the analytics team at Bank of America Merrill Lynch.

If you look at the chart above you can see that the Shanghai Composite Index is in the midst of transitioning into an upward trend. Stephen Suttmeier, a technical research analyst at Bank of America Merrill Lynch, notes that we’ve reached the end of a five year downtrend and are set up for a breakout.

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Category: Markets, Technical Analysis, Trading

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3 Responses to “Get Ready for the Shanghai Composite Break Out”

  1. BennyProfane says:

    But, why? All signs point to their economy (finally) rapidly slowing down due to the mother of all credit crisis. And, besides, how much international money trusts that market enough to bid it up. Hell, the elites there don’t do it, they put all of their money in foreign equities and RE.

  2. Alex says:

    So Barry, do you believe this?

  3. Willy2 says:

    I see a pattern here. Gary Shilling says something along the lines of “the best is yet to come for the US”. One B. Ritholtz says “watch for the break out of the Shanghai Composite”.

    Does one have to bullish to be invited to write a Bloomberg column ?