Some brief views on Chinese market. The Shanghai Composite Index .SSEC closed at 2,714.974 points, continuing a small 0.6 percent rise on Tuesday on technically driven buying and positive manufacturing data, which indicated that China's economic recovery was on track. But the index closed lower than the 125-day moving average at 2,763 points, a key technical level, for a third day. The effective downward breakthrough of this major technical support -- used by investors to delineate between a bull versus a bear market -- means the level now poses a key resistance, pointing to more downward pressure for the market in the near term. "Although the key technical level has been broken, Chinese economic recovery in the second half of the year could keep the momentum intact, which may limit room for a further steep drop," said Li Shiming, senior analyst from Xiangcai Securities. Regards Buffett
