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The Shanghai Cliff
Posted By Global Macro Monitor On November 27, 2012 @ 6:00 am In Technical Analysis,Think Tank | Comments Disabled
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)
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2012/11/the-shanghai-cliff/
URLs in this post:
 sloppy again: http://macromon.wordpress.com/2012/11/20/chinas-shanghai-at-new-lows/
 tested and bounced twice: http://www2.barchart.com/chart.php?sym=XLY00&style=technical&template=&p=DO&d=M&sd=&ed=&size=M&log=0&t=BAR&v=0&g=1&evnt=1&late=1&o1=&o2=&o3=&sh=100&indicators=SMA%2850%2C%29%3BSMA%28100%2C%29%3BSMA%28200%2C%29&chartindicator_4_code=SMA&chartindicator_4_param_0=50&chartindicator_4_param_1=&chartindicator_5_code=SMA&chartindicator_5_param_0=100&chartindicator_5_param_1=&chartindicator_6_code=SMA&chartindicator_6_param_0=200&chartindicator_6_param_1=&addindicator=&submitted=1&fpage=&txtDate=#jump
 Kimble Charting Solutions: http://blog.kimblechartingsolutions.com/
 Image: http://macromon.wordpress.com/2012/11/26/the-shanghai-cliff/nov22_shanghai_kimble/
 here: http://macromon.wordpress.com/2012/11/26/the-shanghai-cliff/
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