Stock markets worldwide broke important support levels recently. The question is: how far will they fall? We look at charts of the JSE All Share Index as well as London’s FTSE-100 index to obtain price targets for the short to medium term. Both charts have well-formed price patterns pointing to clear minimum downside targets still to come. Consequently, caution is advised for the time being and traders will be able to capitalise by selling short.ALSI – LOWER TARGETTrend: Short term down. Medium term sideways. Long term up. Strategy: Traders sell short on a rally. Investors wait before buying.* After briefly making a new all-time high (line 3), the All Share Index formed a large “diamond formation” (as labelled). It’s now broken below line 1 support and pointing to a lower target to come.* The short term stochastic (on top) is relatively oversold but can remain so for longer.* Traders sell it short on a minor – ie, two- to three-day bounce (ideally on a bounce towards line 1 at the 30 600 level). Investors should wait before buying again, because they’ll get in at better (ie, lower) prices.* The minimum downside target is 29 650, measured as the height of the diamond projected down. Note: That target is slightly lower than the 200-day moving average, which typically provides support. * Place your stop-loss for shorts as a close above line 2, which was at 31 930 on Tuesday 22 March. Lower your stop dramatically once the index gets below 29 900, to protect profits.FTSE-100 – BREAKS SUPPORTTrend: Short term down. Medium term sideways. Long term up.Strategy: Sell short on a bounce.* In late February/early March the “Footsie” broke below line 1 support of a large channel with line 2. That was a first warning of this market being overheated.* Furthermore, since January this year the index has formed a rising wedge (lines 3 and 4), which is a bearish price pattern. It’s now broken below line 3 support and is pointing to a lower target to come.* Traders sell short the FTSE-10 index on a minor (two- to three-day) bounce back towards line 3 (5890). * Then expect further downside to a minimum target of 5625, measured as the height of pattern 3-4 projected down. Interestingly, that target will coincide with its 200-day moving average (which provides support). (At the time of writing it was trading at 5800.)* Place your initial stop-loss as a close above 5950. Start locking in shorting profits as the index nears its 5625 target.Please note: For more recommendations and charts by the author on shares, indices, commodities and currencies please go to www.themarket.co.za.