The Shanghai Composite closed at 2,437.68, which is important support if broken (which I believe it will be) we should see the next decline towards 2,319.73.In the bigger picture we are now in wave [C] after the breakdown from the big [B]-wave triangle the longer term target for this [C] wave is in the 1,300 - 1,400 area.
The breakdown in the Shanhai Composite points towards a slowing Chinese economy, which should also drag all the commodity currencies lower. Especially AUD and NZD could be poised for big declines, but the Brazilian Real (BRL), CAD and ZAR will be hit too.
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