China equity volatility continues

Whilst US equity indexes closed lower for the second consecutive day, the China market continues to see strong price swings. Price action and structure is bearish unless new highs are broken in the very near term. Broad downside to the 3400s remains a very serious threat into the late summer.


China, daily

China, monthly

Summary

Little to add.

The retail amateur in China must be getting a little dizzy with the ongoing price swings. More sustained downside looks very probable into the late summer, back to the breakout level of the 3400s.
 
The only thing that would negate the immediate bearish outlook would be new historic highs (> 5178).
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Looking ahead

Friday will see consumer sentiment, but market will be infinitely more focused on the building Greek situation.
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Goodnight from London