Monday, October 12, 2015

China; Deadest Of Dead Cats

Tonights import/export numbers from China provoked me into looking at that little market mover again the formerly impressive Shanghai Comp
Not too impressive....

click to enlarge

Barely rates the description of bounce, dead cat or otherwise.
So check out my preceding posts on the Shanghai Comp, particularly July 7 

In any case the big problem for the world is the overall Elliott Wave count on this market which
still has a high likely hood of tremendous downside risk.

click to enlarge

The "B" wave on this 15 year chart is a classic abc zig zag structure in Elliott Wave theory, retracing a Fibonacci  .78 of the A leg down. 
The "C" wave down measured targets are;
C=A at 718 
C=.78 of A at 1700
C=.618 of A at 2422
Entire History of Comp
click to enlarge
Note the lows on this very long term chart are overlapping the preceding highs, suggesting an abc structure history.





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