Everything falls...

So much has changed in just a short 2 days! FTSE CHINA A50 punched thru its horizintal support at 10200. It is now hanging onto ot its 9000-9200 horizontal/psychological support. If this fails, the next strong support is at 8500.


Chart 1: FTSE CHINA A50's daily chart as at Aug 24, 2015 (Source: uk.investing.com)

DJIA, which broke below its long-term uptrend line, SS at 18000 in mid-June, finally careened off the cliff in the past few days. It violated its horizontal support at 15700 & rebounded back some yesterday. I believe DJIA will try to hold onto this support for now. Its next support is at the horizontal line at 14800.


 Chart 2: DJIA's weekly chart as at Aug 24, 2015 (Source: Stockchart.com)

WTIC joined in the selldown. It broke the psychological USD40 yesterday. Its next support levels are USD34 (its 2009 low); the psychological level of USD30; and USD25 (its 2003 low).


Chart 3: WTIC's monthly chart as at Aug 24, 2015 (Source :investorshub)

After the furious selldown for the past 2 trading days, markets are poised for some technical rebound. The strength of this rebound will reflect market's confidence in central bankers' ability to handle the financial maelstrom. After the big screw-up in Beijing, I hope that the Fed will do a better job at managing the financial markets.

    Turning and turning in the widening gyre
    The falcon cannot hear the falconer;
    Things fall apart; the centre cannot hold;
                                                 (William Butler Yeats's The Second Coming)