Here is a chart of China’s Shenzhen Index. It is not looking so good❗️After a long run to the downside (with the moving averages in bearish alignment, 200/100/40), this market popped right through its 200 day avg and beyond. Most of the time, the first approach of the 200 fails. Here, the market blew past the 200 avg and moved up very sharply in February and March. Still, as soon as it fell back below the 40 avg, the rally was in question.There is no reason to be long. The Shenzhen is now on the verge of breaking its 100 avg and it has given back 50% of its rally from the chart lows, far more than what the US Nasdaq has relinquished.
I see that the run down from 490 to 410 looks to be a 5 wave pattern. If the next rebound holds around the green line I penned in at the 440 level, then the next move could be another 5 wave down of similar proportions. It is worth keeping an eye 👁 on❗️