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The Shanghai index finds itself on two multi-year support lines at (2) in the above chart. Prior times this index has hit these support lines it has bounced!

Global markets and especially commodities, NEED this index to bounce off of these support lines!

Should this support set up fail, the Shanghai index would be sending a message that further slowing in China is still in the cards.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past