David Fuller's view See also my detailed comments on China on Tuesday 31st January.)   

In a brief update, China's Shanghai A-Shares Index (weekly & daily) has continued to make upside progress. While this rally has yet to exceed earlier upside attempts in recent months, let alone break the progression of lower rally highs, I am willing to give it the benefit of the doubt considering December's overextension relative to the MA and also the proximity of the 4Q 2008 to 1Q 2009 base formation.

HSCEI (weekly & daily) and HSI (weekly & daily) have led the recovery from newly completed base formations. Both are temporarily overextended but above their 200 day MAs which have also turned upwards once again. There is sufficient underlying trading to limit reactions during a consolidation phase, while also supporting further and potentially substantial gains over the medium term.