Starting on May 3, 2010 I have written posts concerning the notable divergence that has occurred between the S&P500 and Chinese (Shanghai Composite) stock markets.
The chart below illustrates this divergence; it shows the S&P500 vs. the Shanghai Composite on a daily basis, since 2006:
(click on chart to enlarge image)(chart courtesy of StockCharts.com; chart creation and annotation by the author)
It is notable that the Shanghai Composite led the SPX (S&P500) significantly in late ’08 – early ’09, yet it has been (gradually) declining since that time.
I continue to find this divergence between the S&P500 and Shanghai Composite to be notable and disconcerting, on an “all things considered” basis.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1355.69 as this post is written