Shanghai Composite has had its Dead Cross in a while but in the last 2 weeks it has been violently wiping out market cap in a fast falling trend. While ADX and RSI might be indicating oversold conditions I'd pay heed to the fact that SSEC is leading the BRIC's pack.
Technically there might be seen some violent pullbacks as we all know are characteristic to Bear markets but I would never establish a Long position until the trend has shown signs that it has run its course. Right now we are just starting.
Russia's RTS has just closed below 200-DMA, broken a long lasting Support Trendline and is ready to roll as Shanghai has shown the way. The ADX is Just starting to grow and the trend will gather force once it closes below 1350.
India's Nifty Index has also just breached the 200-DMA and after a brief pullback again trading below the important Trendline Support. ADX is showing growing strength in the developing trend.
Brazil's BOVESPA is tightly following the Leader (Shanghai Composite). It has been rejected at the test of the 200-DMA and it's making new lows with ADX showing real strength in the move.
The chart is actually showing massive Double Top formation and the breach of the Neckline around 62/64K is showing immediate targets around the 52K lows.