China is Doomed!
- Posted by Greg Harmon
- on July 5th, 2012
Since the last look of the Chinese market in May the Chinese Fingercuffs issue has resolved in favor is the lower side. The Shanghai Composite, $SSEC, is now in full on bear mode. The Inverse Head and Shoulders has been negated by a move below the right shoulder making a new lower low. The bullish engulfing candle to end the month of June may have signaled the bottom as it has been confirmed higher but the Composite has major hurdles at 2230 and 2320 to surmount before sounding the all clear bell. Until then the trend is lower and there is a target on a Measured Move lower to 2100 if it fails at 2230 with a pattern break target out of the Symmetrical Triangle to 1940. Support under that is at 1750. With the Government continuing to reduce their made up economic numbers, and a poor reaction to a rate cut yesterday, it should surprise no one if the Composite revisits that area from 4 years ago.
Shanghai Composite, $SSEC
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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