On August 26, 2015, the Shanghai Composite Index traded as low as 2,850.71. While the most recent rise may only be a bear market rally, we think that resistance to the rise might kick in around the 4,400 level. Rising above 4,4oo would suggest that a run to the previous peak of 5,166.35 is not out of the question. Keep in mind that a bull market in this index is not confirmed until the index exceeds the prior high, until that time the Shanghai Composite is in a bear market rally.
