Shanghai Composite Breaks Above 200-Day Moving Avg For 1st Time in 228 Days
Jon "DRJ" Najarian | email@example.com
Our @guyadami and @grassosteve love to trade stocks as they press support and resistance levels. The reason they do it is it just works, either buying on break above, or selling on break below.
Well, here's a reason to NOT sell in May and go away; China's Shanghai Composite broke back above its 200-day today after trading below it for the past 228 trading days.
According to our friends at Bespoke, this was the third longest streak of its kind since 1990. Bespoke says, "China has had three prior streaks of 200 days or more below its 200-day. Following the 278 day streak that ended in March 2009, China’s market took off, rallying 1.4%
over the next week, 9.05% over the next month, and 25.66% over the next 3 months."