China stocks could send bearish message to the states!

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by Kimble Charting

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While trade tensions between China and the States are getting a good deal of attention of late, one might want to keep a close eye on the price action of the SSE Composite (Shanghai Index) at this time.

It has created several lows and highs over the past 13-years inside of rising channel (1). It hit the top of the channel in January at (2) and it stopped on a dime and started turning lower. The broad markets in the states peaked around the same time.

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The weakness of late now has the SSE index testing the bottom of rising support channel (1) at (3).

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If this support would happen to break, it would send a cautionary message to stocks in China and in the States.

What the index does at this support line, looks to be very important to stocks on a global basis.

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