The Shanghai Composite is trading very sloppy again and looks like a break of the 3-year low at 1995 is in the cards.  Last week it tested and bounced twice off this level on rumored government intervention.

Kimble Charting Solutions put together this excellent chart illustrating the Shanghai’s ugly long-term pattern and the importance that current support holds.   The index is almost down a stunning 70 percent from its 2007 highs.

Will another 10 percent of downside blow up global markets?   Who knows and we sure hope not.

Keep it on your radar.

Click on chart to enlarge and for better resolution.


(click here if chart is not observable)

Category: Technical Analysis, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.