Shanghai surprise

The Shanghai Composite Index found support at 2000 and is retracing to test resistance at 2100. Respect would indicate a strong primary-down trend, confirmed if support at 1950 is broken. Some may find the move surprising after weak manufacturing PMI data on Thursday, but the real estate sector surged on the back of falling money-market rates following a liquidity injection by the PBOC. A 13-week Twiggs Money Flow peak below zero would also warn of long-term selling pressure.

Shanghai Composite

* Target calculation: 2100 – ( 2250 – 2100 ) = 1950