The Shanghai Composite ($SSEC) took a hit on Monday and closed below support from the April low. This move is reversing the counter-trend bounce and signaling a continuation of the bigger downtrend. $SSEC is in a big downtrend with lower lows and lower highs since the initial breakdown in June 2015. There was a counter-trend bounce in the second half of 2015 and the January breakdown reversed this four month upswing with a sharp decline in early January. After hitting a 52-week low in late January, the index bounced back with a move above 3000 in April. The move does not look that strong because it retraced a little over 38.2% of the prior decline. Moreover, the advance appears to be ending because the index closed at 2382 on Monday, which is below support.
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