Is China about burn and crash after their huge The Shanghai Composite plunge? 5.2% on Friday alone?
Some highlighted points to consider:
And Chris Carolan’s 30 years of technical analysis experience keeps paying off for his subscribers.
Case in point: The Shanghai Composite cratered 5.2% on Friday — the biggest one day drop in China’s benchmark index in 14 months. The Shenzhen Composite lost a whopping 6.1%.
Here are two of Chris’s forecasts for the Shanghai from earlier in the week:
“Prices…are generating repeated bearish RSI divergences. We should expect a…top now.”
Asian-Pacific Short Term Update, Nov. 9
“We are looking for a reversal now…”
Asian-Pacific Short Term Update, Nov. 11
Of course, the widely reported “reason” for the big drop in China’s shares is the talk about China raising interest rates. Marketwatch quotes Wu Dazhong of Shenyin Wanguo Securities in China:
“Investors are in a rush to lock in profits as they are concerned that [China’s] central bank may launch more tightening measures over the weekend.”
Here’s how a few other markets fared Friday:
- Hong Kong’s Hang Seng declined 1.9%
- Japan’s Nikkei sank 1.4%
- Taiwan’s Taiex dropped 1.4%