The Shanghai Composite index broke out of its triangle consolidation today. It did not clear the next support at 2,610, but I would expect it will shortly and when 2,610 is broken to the downside we should see the next big decline towards 2,320. As long as support at 2,610 stays intact we can't exclude a rally back towards resistance in the 2,695 - 2,720 area, but I wouldn't bet on that outcome...
If we break below 2,610 it was the last nail in the coffin and things could turn very ugly very quickly. Especialy take care of the com-currencies, they would be in for quite a drop AUD and NZD should feel the heat the most.
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