China Shanghai Comp

A plausible Elliott Wave count on the Shanghai Comp;

click to enlarge

 as might be expected, it's looking a little overcooked.
 How close to crisp is it in the short term?

 click to enlarge
This is the most negative possible wave count I could come up with. It is not unusual to have an extension show up in the 5th wave position as it is consistent with speculative frenzy. It is possible it is a 3 however, and there will be a series of higher  highs to complete the count up, but given the RSI negative divergence and MACD, it's very likely most of the way there.

Todays  4% drop is not what momo players want to see.
Note the daily chart above is not updated to include today.

Real support is a long way down at 3050, and I would imagine short term, the bulls need it to stay north of 4000.

Why do we care? China craps out crude craps out.


Popular posts from this blog

WTI Update- a 4 Handle Future?

Biden Climate Plan and Global GDP

Gasoline a By-product of Distillate