I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Wednesday, June 30, 2010

Clues from the Chinese market

The chart below is of the Shanghai Index. Interestingly, it turned red well before the All Ords - seemingly leading our market down (the red vertical line indicating when the XAO turned red). Ominously, the Shanghai Index has just fallen out of a consolidation zone. Such zones often form at the half-way point of the move. If that is right the Chinese market has another 500 points to fall.






Click on chart to enlarge



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