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On May 24, I presented a chart of the Shanghai A index as it had just reached converging Fibonacci targets in the 2640 area. This combined with the high degree of bearish sentiment suggested this market could be bottoming. However, this market failed to mount much of a rally and instead traced out a triangle formation. Tuesday’s drop through support at 2600 gives targets in the 2300 area. This is putting pressure on all equity markets.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
