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Below is a very revealing 10-year comparative chart from John that shows China’s Shanghai Composite, Copper and the Venture Exchange.  As we’ve often illustrated at BMR, there is a high correlation between the Shanghai and the Venture (plus the S&P/TSX Composite).

There are a few important points regarding this particular chart:

1) At 955, the Venture is on the verge of breaking out above a downsloping wedge as you can see on the bottom of this chart;

2) The SSEC, in our view, put in a double bottom and notice how the RSI(14) hit an important low in late 2012 and is currently in a clearly established uptrend – this is very bullish for the Chinese market and that in turn bodes well for commodities.  Again, there is a proven strong correlation between the Shanghai, the Venture, and the TSX Composite;

3) Copper has shown superb support and appears to want to move higher, which is significant for the Venture.

As part of Monday’s Morning Musings that we’ll be posting at approximately 5 am Pacific, John will be examining a very important long-term Venture chart that provides powerful evidence that the 2+ year CDNX bear market indeed appears to have ended.

SSEC, Copper & CDNX Comparative Chart