Tuesday, April 27, 2010

TAIEX Outlook - Week of April 25th

I'm looking for a potential double top here on the TAIEX. Chart below:

Adding to my belief that the TAIEX may soon be under more selling pressure, here's the Shanghai Composite Index chart, where it looks like the bears are in complete control:

Keep in mind that the Shanghai Index was the first to bottom during the global meltdown in the markets in late 08 and early 09, leading the U.S. markets up, and now perhaps leading the way down.

Lastly, the U.S. markets took a plunge today, down more than 2% in one of the largest down moves in recent memory. While there's still a lot for the bears to prove before things get rolling to the downside, it's a reminder that being long in this over-extended market can be brutal.

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