Shanghai Composite - Long term trend-line breakdown

For the first time in 20 (twenty...) years the rising trendline has been broken on a monthly basis. That does not boader well for Chinese stocks and the Chinese economy in general.

In early August we broke down from an almost three year B-wave triangle, which has a target near 1,200.

A slowing Chinese economy will have serious effects on the Australian and New Zealand economy, but a lot of especially commodities driven economies will be hurt, when the chinese economy slows. Once again we will be able to say the decoupling in a global world is not an option.