Possible bearish targetsAs the charts begin to turn more bearish, we are forced to look for some sign of a turnaround. The trend, which has been going on for over a year, appears to still be intact. I expect that we will either form a double bottom as we did back in 2011 (I will link to an interesting chart by lowstrife that caught my attention), or we will have one final leg down to the $120-$130 level where we will find the most support. If that doesn't hold, then we could see a flash crash to $86 followed by a very slow crawl upward/sideways for a long time. At the current rate, I'm sad to say it doesn't look like we will see a swift recovery. It may still recovery, but it may take longer than we expect.
One thing is clear now: that the China bubble really was a bubble. Now we are in the despair phase and we may hang around here a bit longer before an uptrend can begin in earnest.
