Mainland Chinese markets fell for the week, but remain in Confirmed
Uptrend. The Shanghai and Shenzhen pulled back 0.55% and 2.1%,
respectively, but both remain above moving averages with uptrend still
well intact. Market direction going forward could be directed by the
strength in the Shanghai. Since October, the market has outperformed
the Shenzhen, up 8.9% vs. 6.2%. The Shanghai has also accrued fewer
distribution days with only two vs. five for the Shenzhen, in the last five
trailing weeks. Currently, the Shanghai is extended from the 10-week
moving average at approximately 4%. We would not be surprised to
see the market take a pause in the coming week, which would allow
the average to catch up.
