Shanghai Tumbles Again. Will the SPX Follow?
Below is what we discussed one week ago, with Shanghai trading at 4481, down 13.5% from its multi-year high at 5177 (6/12/15).
Since then, Shanghai has plunged to today's low-close at 4192, down 20% from the June 12 high, as the benchmark China Index follows our "parabolic roll over that is destined to press directly into the vicinity of the up-sloping 200-Day EMA, now at 3614."
Next significant test of support: Along the 8-month trendline in the vicinity of 3910.
Once again, we have to pose the question about whether the parabolic action of the Shanghai Composite means anything to the directional action of the SPX?
Answer: we would not be surprised if it did have a negative impact, and represents just the sort of "out of the blue" influence that spooks equity investors worldwide. MJP 6/26/15
After climbing 70% from its Feb low at 3049 to last week's high at 5177, the Shanghai Composite (SHCOMP) has plunged 13.5% in what looks like a parabolic rollover that is destined to press directly into the vicinity of the up-sloping 200-Day EMA, now at 3577.
It remains to be seen if such a dramatic decline in Shanghai negatively impacts the SPX. MJP 6/19/15
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