The tale of two patterns: The Shanghai Composite Index (SHCOMP) appears to be on the verge of upside acceleration towards a test of the upper-resistance band of a 3-year base pattern.
Upside penetration of 2270 should trigger continuation to 2440/80, the final resistance zone prior to the unleashing of the powerful upside potential derived from the base.
Meanwhile, the cash SPX pattern represents a mature, 3-year bull trend that continues to bump its head against the upper-channel resistance line off of the Oct 2011 low.
From an investment perspective, my preference is to be long the Shanghai Comp, and less so the SPX.
That said, however, the path of least resistance in the SPX continues to be up until, or unless, it suffers significant technical damage.
Bottom line: initial-long positions should be taken in the China equity market concurrent with reducing exposure to the long side of the SPX.