Chart of the day: Short-term signals dominate in Shanghai

The technical outlook for the Shanghai share market remains positive, although the expansion in the proprietary selling pressure index from analysts at Lowry Research is worth monitoring. It is fast approaching its February peak and a sustained break above it would extend the upward trend and suggest the market could be subject to increased volatility in the weeks ahead. Short-term indicators suggest the current pullback has more room to run, which means investors waiting for a buying opportunity could be well advised to wait a little longer.