Shanghai Composite Breaks Down Through 50-Day Moving Average: First Sign of Long-Awaited Correction?

China's volatile Shanghai Composite last week broken down below its 50-day moving average, which is a weak sign given that the index's 200-day moving average is much lower at around 2,400 versus a recent close of 3,046.97. The bearish price objective as per point and figure chart analysis gives downside to 2,600, or some 15%.

Since China indices are much more volatile that other developed stock markets, a 15% correction in China would mean something more like a 10% correction in the S&P 500.