By Chris Kimble
The Shanghai index was one of the weaker global stock markets in 2012, trailing the S&P 500 by 10% on the year. Of late, the Shanghai index hit a multiyear support line and has been acting like a bungee cord, bouncing off this line.
Over the past 30 days, this index has gained more than 15%, outperforming the S&P 500 index by a large margin (see inset above). While the media has been focused on the fiscal cliff news, they might be missing the bigger story -- that China is bouncing off of support, which could be a positive message from a macro perspective.
(Click here for a larger image.)
Source: Kimble Charting Solutions.