Published October 25th, 2018

The SSEC continued to trace textbook Elliott wave patterns. It did dive below the previous low as we indicated on the mid-term update on October 14th. More importantly, an almost 10% impulse to the upside got subsequently recorded. That was the first but very important piece of confirmation regarding our case.

The short-term trend, which is depicted in brown is probably complete as we write this. Chinese stocks are likely to show some form of followthrough to the upside. Our base case is some form of complex sideways action. Isn’t this minor degree turn bullish for US equities? Why should it – the previous minor degree drop wasn’t bearish either. There is no stable and reliable correlation between the US and Chinese equity market at this point in time.


The analysis above is a historical abstract of our Shanghai Composite Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.