Morning Thread

Gator's Chart of the Day: SSEC-X

Today I'm taking another look at China.  I keep hearing the talking heads say China is slowing and will take the world down the drain with it.  The chart says otherwise. 

(I know it takes more than 2 points to make a trend line.  This one actually has 4 and it originates at the April 2011 high but I couldn't get a decent picture when I tried to include them all.)

The reversal that occurred with the tight double bottom in January is clear.  If you want to throw some Fibonacci Retracement lines on it you'll see that 23.6% is 2350 and 38.2% is just below 2500.  On it's current trajectory the index should hit the descending 200 day sma before that.

With the 50 day sma now turned upward and the daily candles pushing the upper Bollinger bands (which are expanding) it looks strong to me.