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Thursday, 25 June 2015

China stock bubble

Red alert?

For anyone feeling brave, here are the technicals.

After holding support the SSEC followed through higher to close at 4,690.15.

There is resistance at 5,030 and "support" (of sorts) at 4,530.

To put this in context the index has exploded higher from below 2,000 in only March 2014.

Stock markets in China have added $6.5 trillion in 12 months, while there are alarming stats being reported about the inexperience (or otherwise) of China's new breed of investors.

It's a monster stock bubble of epic proportions.

And it will probably end in tears.