Shanghai Market Update

The Shanghai Composite Index drop 398 points to end the week at 3094. That is a 12% drop in 1 week.




The phase chart is showing weakness since 10 Mar 08 when the index dipped into “Bearish” phase. It has stayed in “Bearish” mode for 29 trading days. For this round of bear attack the index has dropped from 4300 to 3094, a whopping 1206 points or 28%. The bulls must be feeling the heat right now.

The last time the index fell into “Bearish” phase was in 27 Sep 05. The market stayed in “Bearish” phase till 9 Dec 05, a total of 47 trading days.

The chart doesn’t look good for Shanghai. Hope it can find some support at 3000.