Monday, July 9, 2007

Shanghai Index Double Top

It certainly appears that the Shanghai Index has formed a traditional double top. The first top being the peak, and the second top being an unsuccessful attempt to drive beyond the original peak. The index is now down 13% from its height and appears to be diving through the support level.

Not a compelling technical picture for any bulls touting the Chinese market. I expect the situation will only go downhill from here.