Back on November 5, 2008, this chart outlined the ascent and breathtaking fall of the Shanghai Composite Index.  This pattern played out a mere five years earlier in the Nasdaq Index.  The key to the bottoming process was the breakout of the steep down trend line – the Chinese markets registered this signal a few day later and on November 22, 2008 I noted that it should lead the global markets.

Nine months later from the original post, the SSEC Composite is up an astounding 83% from the lows around 1,700 to today’s close at 3,145.  Over the next weeks, expect there to be consolidation sequence due to both gap resistance around 3,200 and pocket resistance up to 3,500 as seen on weekly charts.