Shanghai Fund Manager Dumps All Holdings in ‘Insane’ Market - Bloomberg Business
The recent display by the Chinese government trying to control its stock market has failed. It made it worse as investors panicked to sell before the next halt in trading.
China Stocks Extend Rebound as State Funds Said to Buy Equities - Bloomberg Business
Now there is news that they are scrapping this foolhardy attempt at controlling an emotional group of people.
They say there is much more downside to come, but what if it was just unfounded fear in the short term.
Blood Bath: Dow Tumbles Nearly 400 Points for Worst Start in History, Nasdaq Corrects - Stocks to Watch - Barrons.com
This has also rubbed off on US stock markets. I see a huge an "ABC" correction and it would be no surprise to see the SHCOMP rally or even roar in another 3 wave bullish phase.
I should have labelled all this as a triangle as I would be pushing it as a diagonal "C" wave. Longer term the Shanghai, should crash below the 2900 price level, but it may not make it on this trip. Also at our present bottom, a very big gap was closed, which can work as a magnet and repel stocks the other way. You never want to ignore any gaps as they have a 90% chance of getting filled.