On May 3, 2010 I wrote a post concerning the notable divergence that had occurred between the S&P500 and Chinese (Shanghai Composite) stock markets. Since that May post, the divergence has grown.
The chart below illustrate this divergence; it shows the S&P500 vs. the Shanghai Composite on a daily basis, LOG scale, since 2006:
(click on chart to enlarge image)(chart courtesy of StockCharts.com)
It is notable that the Shanghai Composite led the SPX (S&P500) significantly in late ’08 – early ’09, yet it has been stagnant- to-declining lately.
I continue to find this divergence between the S&P500 and Shanghai Composite to be notable and disconcerting, on an “all things considered” basis.
A Special Note concerning our economic situation is found here
SPX at 1276.63 as this post is written