Breakdown!
After a period of weak consolidation SSEC has broken to new lows today, going down a whopping 4%. In my last post, i suggested volatility ahead, with a possibility of one more new low. This move, while unnerving to most investors, is probably nothing more than a shaking out of weak hands before a reversal(probably a sharp one) - a head fake of sorts.
Evidence is in the positive divergences that are setting up on the daily and weekly charts - from oversold conditions - in addition to volume clues cited in the last post.
Targets
Immediate target for this move lower would be 2400, followed by 2300 area - which should mark the final low before a reversal for the medium-term. I'll be looking towards accumulation of the SSEC, for the medium-term, during the next couple of months.
Will post again on the bigger picture in the bottoming phase. All the best!
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