China is not showing any signs yet but I can't feel bad for them. China has had a GREAT year in the market. Even with this pullback, if you invested in the Chinese market around this time last year, you would have still doubled your money. If you invested at the beginning of the year you would still be up over 10%. That is pretty darn good. The only REAL losers are people that invested after April Fool's Day (pun definitely intended).
That being said, its time to get real! The Shangai index had a major drop and is showing no signs of hope. Currently, the first sign of hope would be a close over 4223. Even this would only be a glimmer and I would be skeptical. I would say a close over 4687 to be the real turning point and that is a big RISK ratio right now. I will keep an eye on this and adjust these key levels as necessary.
The blue lines on the chart were support lines and the red line is currently the BEST resistance line. I got these lines from the weekly and monthly chart. Currently the blue lines are irrelevent but dropping below 4832 was a MAJOR indicator that something was wrong.
I am interested to hear what you may think.