First take a look at my post from September 28 here: http://theelliottwavesufer.blogspot.com/2011/09/chinese-economy-in-trouble.htmlThe charts above show the monthly and weekly price-action of the Shanghai Composite.
On the upper chart we have now closed below the 20 year rising trend-line support four month in a row, all but confirming the change in the long term trend.
Looking at the weekly chart below we can see important support at 2,307 being challenged. If... No when this support breaks the next target will be the bottom of wave [A] at 1,668, but the longer term target for wave [C] is at 1,080.
USD/CNY is still in a clear downtrend, but we have multiple warnings, that we could soon see the downtrend-line at 645.80 tested. If resistance at 645.80 is broken we should be headed higher towards 689 (there is no Elliott wave count on this chart, but the 689 mark is the top of wave 4 of the decline from 869 in 1994), 689.00 also marks the 23.6% retracement target for the entire decline from 869.00 to 637.84.
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