NEW YORK (TheStreet) -- The financial crisis in Greece has caused extreme stock market volatility in the stock markets around the globe from China, through Europe and into the United States. Here are the top 10 technical chart setups to focus on.
All charts are Courtesy of MetaStock Xenith
The Shanghai Composite ended Monday's session at 4,053.03. While the index is still up 25.3% year to date, the decline since it set a multiyear intraday high of 5,178.19 on June 12 puts the index into bear market territory, down 21.7% at Monday's close. At Monday's reaction low of 3,875.05 the decline from June's high to low was 25.2%.
Note that the weekly chart below shows that Shanghai Composite traded well above its 61.8% Fibonacci retracement of the decline from its all-time intraday high of 6,124.04 set in October 2007 to the multiyear intraday low of 1,664.93 set in October 2008. Under the 61.8% Fibonacci retracement of 4,422.71 the risk was to the 50% retracement of 3,894.38 which held at Monday's low.
If China's bear market intensifies, the next down side is to the 38.2% retracement of 3,366.05. The long-term reversion to the mean is the 200-week simple moving average of 2,628.57 and rising each week. If the Shanghai Composite ends June on Tuesday below May's low of 4,099.04 the index will have a monthly downside key reversal.