If you’re invested in Japan’s stock market and reading this while drinking something, you might want to put it down first. Or just laugh it off as another “gloom and doom” merchant, and when have they ever been right. Right?

Overnight the Nikkei was down about 3%, which ought to be a loud warning as well. Abenomics has failed. Technically the market looks like a straight-up move with what could have been a “healthy” retrace that failed to break out, and from failed breakouts come fast and vast moves.

Technically, the first-level target for the Nikkei is at 11,459, with a second level target just over 10,000. That would be an almost 40% fall from late May’s levels.

China’s Shanghai market has an even-more ominous technical view.

via China Go Boom (Along with Japan) in [Market-Ticker]