(Click at the pictures to enlarge)In the last couple of weeks we have seen the Sanghai Composit falling about 20% from the top, but the Sensex has barely seen any real downside pressure (down 1.9%) , but that is about to change.
If my count is right, minor wave (iii) of III down is about to begin. This wave should be strong and powerfull and we should see a move down close to 14.700. Longer term we should be headed much lower.
There is no reason why the Sensex Index should do better than the Shanghai Composit. The picture is very much the same for the Brazilian Bovespa. China has been buying a lot of commodities from Brazil, but I do think they (the Chinese) are about to scale down their buying.
Meaning lower prices for base metals, oil and other commodities.
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