Shanghai Stock Exchange shows signs of very strong buying. I believe the whole selling and tiring process to wheel and deal the public had completed over the course of 2 months from Nov 2010 to Jan 2011. The public who had been depressed and disappointed dare not enter the market now because of the constant down trending of the SSE. In simple words, they had lost confidence.
SSE revealed signs of strong panic selling and accumulation which is of course good news for the market because it is due for a strong rally. Today marks the first day of a very strong buying. It tells me SSE is due for a very strong rally and any reaction is a buying opportunity. The SSE shouldn't drop any further. I shall continue to watch for higher highs and higher lows until i see culmination and that should mark the end of this rally that is about to begin.
Ronald K
