Up $1.4 Trillion, China’s Stock Rally Is Nearing a Big Hurdle
- Equity benchmark tries and fails to rise above key level
- Mounting 3,000 would be real start of bull market, trader says
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The stunning surge in Chinese equities has traders talking about the Shanghai Composite at 3,000 points again, with two whipsaw sessions underscoring the importance of that key level.
For the second day in a row the equity benchmark got within a few points of 3,000 before rapidly giving up gains. The line was previously a longstanding support and is just below two key Fibonacci retracement levels -- from its 2015 and 2018 highs -- that are closely watched by short-term traders.