As has been discussed previously in China Weakness: A House of Cards the Chinese markets have been red hot with speculative mania. However looking at the Shanghai Composite Index recently, it appears that things are beginning to cool off. The Chart is flashing a technical sell signal.
Has the Chinese Market Peaked?
The massive August 2014 breakout in the Dollar and subsequent rally could be the beginning stages of a Bullish Supertrend. This chart illustrates the strong dollars effect on commodity prices. The uptrend is currently stalling at pivot resistance. If the uptrend continues expect commodities to continue to experience downward pressure.
There is alot of momentum behind this rally. The Trend is your Friend! ;)
I was doing some research this morning into bond prices and ended up stumbling into an amazing correlation between the USDollar and the S&P 500.
The correlation between tops and bottoms in this ratio and the S&P 500 is amazing! Recently the S&P 500 has began to under-perform relative to the USD. Could this be a warning sign that markets are about to drop in the near future?