Back on April 19 I published, "The Scariest Chart in the World." It was the Weekly chart of the Dow Jones Shanghai Index. It was then on the verge of a Weekly Trend Sell Signal. Here is an updated chart:
The SELL came the week of April 26 at about 350 on the index and in the past four weeks the Index has dropped about 10%.
How about an encore?
The Scariest Chart in the World, Part II
This is a Monthly version of the Shanghai Index which itself is now on the verge of a Monthly Trend Sell Signal. You can see that if the trend line goes, the next level of support is around the late 2009 lows, just under 200 on the index, or about 35% below current levels.
Finally, a look at the Daily chart with an Elliott Wave count:
The Daily trend is suggesting a drop below 300. The monthly reversal is at 296, meaning any monthly close below 296 triggers the Monthly Trend Sell Signal. Ergo, the scariest chart in the world, part two.
Disclaimer:Wish I was a Kellogg's Cornflake, Floatin' in my bowl takin' movies.