Sunday, August 30, 2009

Shanghai Composite Index versus S&P500


The Shanghai Composite index has acted in the past as a leading indicator of what would happen later in the other stock markets worldwide.
It reached a bottom in early November 2008 whereas the bottom was reached by the S&P500 in early March 2009.
Here is the scenario I have in mind regarding the S&P500 (look at the chart above).
Since its high early April, the Shanghai index fell of about 20%. Is that what is going to happen to the S&P500?

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