SSECI may have broken above its immediate downtrend line

On April 9th, I have posted that the SSECI may be due for a rebound, ahead of the upcoming Beijing Olympic (go here). The rebound has finally arrived. As at 10.00 pm ET, SSECI was up 278 points (or, 8.47%) to 3556. At this level, the SSECI has just broken to the upside of its immediate downtrend line resistance (at 3400). This breakout is likely to signal a bottom for the SSECI.

The market is finally seeing some recovery after the Chinese government had placed restrictions on sales of shares by controlling investors in listed companies on Monday, in an effort to avert a flood of new paper hitting the market.


Chart: SSECI's daily chart up to April 22nd (from Yahoo Finance)