Yesterday, the Shanghai Composite Index broke through primary support at 2300. Today the index followed through, falling to 2260. Dow Jones Shanghai Index shows a similar fall below 280. The weekly chart shows an earlier break in August below primary support at 330, leading to a re-test of the 2010 low at 280. Now primary support at 280 has failed, signaling a decline to 240*. Declining 63-day Twiggs Momentum, below zero, warns of a strong primary down-trend.
* Target calculation: 280 – ( 320 – 280 ) = 240