In China, the Shanghai share market broke its major psychological support at 3000. The selling pressure has continued to expand on time here in January as oil also broke its major psychological support at $30. These levels are not really important, technically speaking, but they are more important to fundamentalists.
In the case of Shanghai, the low of last August 2015 at 2850714 has been technically important. Of course, we elected ALL Weekly Bearish Reversals from the June 2015 high. The critical indicator here is the Monthly Bearish Reversal that lies at 3049100. A monthly closing beneath this level will signal that indeed we have a sustainable correction in motion. Keep in mind that ultimately the rally we saw into 2015 did take out three Monthly Bullish Reversals, so this tended to imply that the 2008 low would indeed hold for seven years, which it has done, so far, given the fact it was a seven-year rally from that low.
In Crude Oil, the 2009 low was 33.55. Here, our Yearly Bearish Reversal was 32.20. We obviously elected all four Monthly Bearish Reversals from the April 2011 high. This warned that we would see new lows. Our technical support during January lies at $21-22, whereas our system support lies at the $25-26 zone.
