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In the last week of trading, the Shanghai Stock Exchange Index has found its footing, trading above my short term resistance indicator of 2797. If this level can hold, we could be setting up for a long China trade into the August Olympics.

The GDP slowdown news in Asia is historical fact now, and inflation readings for July to date seem to be cooling off, alongside the Chinese Yuan taking a breather. This is all positive, directionally, for a stock market that's in dire need of less than bad news.

KM
chart courtesy of stockcharts.com