The Chinese Shanghai Composite Index declined overnight to meet our 3,100 initial downside target, which was first displayed and discussed in Friday’s (August 21st) Weekly Wrap-Up report, to capture a 408 point, 12% decline in 2 days.

Although this initial target being met may help to trigger a near term rally, it does not in any way signal a sustainable bottom.

Shanghai Composite daily since April
Shanghai Composite daily since April

We have been focusing on Chinese markets all summer because of their positive correlation to, and obvious influence on, the US market.  During the same 2 day period, the positively correlated S&P 500 has declined by an additional 104 points or 5%.

Asbury Research subscribers can view our August 21st Weekly Wrap-Up by  clicking here.


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