Good winds and plain sailing

Long-term bullish outlook for Shanghai market will take the index above 3,400 for the long-term

World markets have followed the behavior of the Shanghai Index and paused after the fast uptrend in 2009. The pause has not developed behavior patterns that suggest the uptrend will return to a downtrend. The market appears to be developing a broad sideways movement. The Shanghai Index has a good support level near 2,900 to 3,000 and a strong resistance level near 3,300 to 3,400. This is a trading band.

Other international markets including the Dow Jones and the London FTSE all show a similar pattern of behavior because they are following the development behavior of the Chinese market. In many world markets the sideways movement has developed because the economic growth in these countries has stalled.