Shanghai Index leads global stock markets
“The herd/world markets seem to follow the lead of the Chinese Shanghai Composite Index, said Chris Kimble of Kimble Charting Solutions. “If support remains in place and the Shanghai Index can rally, this would be a positive for global equity markets, the opposite of the situation back at the April highs. Portfolio design/allocations should continue to be influenced by the action of the Shanghai Index.”
I have been alerting readers to this relationship ever since the Shanghai Index became the first major bourse to exit the credit crisis bear market, leading other markets by about five months.
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Source: Kimble Charting Solutions, December 2, 2011.
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