Monday, August 31, 2009

Shanghai Composite Crushed






This evening the Chinese Market is getting slammed. Perhaps it has to do with the Japanese election results , or perhaps with China's fear of runaway inflation and a desire to reign in bank lending growth. Pls see China odds and ends .

The Shanghai Composite index is down 5.4 % at 2700, new lows . It looks like the last structure up begins at 2071 and runs to 3471. A retrace of .618 is at 2600, and if the move down exceeds that, the risk of a much more extensive collapse goes way up.

Of course that might pose a problem for the commodity bubble.

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