China

Shanghai - The Chinese index of stocks has been in a bear market for long and despite hopeful media commentary the stock index shows no signs of the bull. It sold off from the weekly bollinger band to break the 40dema and rising trendline on the daily chart below. The entire advance is a corrective pattern and not an impulse. Whether we formed a series of impulses down since Feb or a running flat in wave B is open as an alternate. But both cases indicate new lows for Chinese stocks.