Elliott Wave 5.0 "Reboot"

Monday, January 4, 2016

SHCOMP, Shanghai Index Crash Review

Since the June 2015 top this Shanghai index has been on a bearish trend that has some very funny moves in it. Many times I don't know how to classify them at this time. Right now I am working the entire thing with an expanded pattern "B" wave, but it's also shaped like a fast moving triangle. 

What is very close to being the same with its brothers in the USA is that from the June 2015 bottom the wave count is about the same. What I see as a potential 4th wave decline has crashed right through my bottom trend line, which is about normal as 4th waves go.  I would like to see a strong rally and the SHCOMP soar to another newer high. This may be mythical thinking as diagonals heading down have much the same type of wave structures.