China and Australia Indices: An Abnormal Divergence
Candy Matheson | Mar 30, 2020 01:52AM ET
As can be seen on the following monthly comparison chart of China's Shanghai Composite (SSEC) and the Australian 200 Futures Index (AUS200), their price swings began to markedly and, abnormally, diverge from December 2017 to present day.
While the AUS200 continued to make new swing highs, the SSEC failed to do so.
The AUS200 has plummeted and has now made a new swing low, while the SSEC has not...yet.
We'll see if this significant weakness in the AUS200 is a harbinger of much further weakness to come in the SSEC in the next few days/weeks.
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