Cup trend bodes well for markets

The Shanghai index shows a powerhouse economy. Looking at the weekly chart of the Shanghai index, this is the only global market, which showed a true, and powerful 'V' shaped recovery in 2009.

The recovery started several months before the recovery in Western markets. To a significant degree the behavior of the Shanghai market has led the behavior of Western and Asian markets.

Many people out of habit follow the Dow, but the Dow increasingly follows Shanghai, but with a lag of several months.