September 30, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Chinese Market Breaks Negative Pattern

Please click here for a chart of Mainland China ETF (ASHR).

Note the following:

• In prior Morning Capsules, we shared with you details of China’s stimulus program.  Prior to last Tuesday, Chinese stocks had been beaten down and had been trading at low valuations.
• The chart shows that the Chinese stock market has broken the negative pattern of lower highs.
• The chart shows that the pattern existed from the 2021 peak until last week.
• When the rally first started, the concern was that this rally would also fail like prior rallies.