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When it comes to year to date or the past 90 days performance, the Shanghai Index is at the top of the list for both time frames! No doubt this index has been white hot of late! Even though the Shanghai has been screaming higher of late, the rally only has it back at its 23% Fibonacci resistance level, drawn off the monthly closing 2007 high and the 2012 low.

The month is far from over with, yet a bearish reversal wick could be forming at this key Fib level. Could this reversal wick be taking place at a key level for the S&P 500 as well?  

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This pattern in the S&P 500 was shared yesterday, prior to the 5% decline in the Shanghai index overnight.

With the Shanghai index at Fib resistance and the S&P 500 (above) at the top of this multi-year rising channel, this is a price/pattern situation where some selling pressure could take place.