China's Shanghai Index: No Longer A Market Leader
Candy Matheson | May 13, 2019 07:30PM ET
Take a look at this monthly comparison chart of the S&P 500 index (SPX) versus China's Shanghai Composite (SSEC).
While the SSEC literally exploded during 2007 compared with the gains made by the SPX, and made an anaemic attempt in 2015, it's, essentially, gone nowhere since mid-2015.
Chart powered by TradingView
If this is a harbinger of things to come, I'd say that China is in for a rough ride over the next few years, particularly in light of the current trade war with the U.S. And, it's time for them to negotiate in good faith, as Senator Grassley tweeted.
You can see from my post of May 6 that major support sits at 2500 for the SSEC. If it blows through that level, watch out below.
World markets closed the day massively in the red on Monday...possibly related to this trade escalation and perhaps other world tensions, e.g., Iran, Venezuela, North Korea, etc., as well as slowing world economies. We'll see how overnight trading fares in China tonight.
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