Zak Mir on big trouble out East – a videocast special

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It could very well be that the big Chinese / Japanese indices get something of a double whammy in terms of the present breakdown of the Western markets via Tapering and Emerging markets investment outflows. What will be of particular interest is whether the extended decline for the Shanghai index will accelerate, or of course whether the Nikkei will go with Dollar / Yen, rather than the breakdown in stocks in most other major markets..

Shanghai Composite: Ongoing Breakdown

Persistent, yet erratic progress within descending February 2013 price channel

Resistance seen towards 2,237 200 day moving average level

Risk retest of June 2013 support towards 19,000 over next 1-2 months

Hang Seng:  Head & Shoulders Reversal

Clear post December head & shoulders pattern leading to latest breakdown

Unfilled gaps to the downside through 200 day moving average at 22,493 imply sustained downside move.

Risk of June support retest below 20,000 before any sustained recovery begins.

Nikkei 225: Bull Trap Retreat

January / February bull trap through former May 15,942 intraday peak for 2013

Island top formation backed near term bear argument

Risk of June sub 12,500 support test