As China Stocks Retreat, Fears Grow About Economic Impact
China's stock market crashed before the economy's steep slowdown last year, and it soared before the strong recovery earlier this year. So does the current sell-off presage fresh economic troubles?
China's benchmark share index fell 4.3 percent on Wednesday and is now down 20 percent from two weeks ago, sending tremors through equity markets worldwide.
European stocks tumbled and US stocks opened lower in reaction to the China selloff. Some market pros think that China is a good indicator of where stocks are headed.
"They seem to have peaked out before we did," Art Cashin told CNBC. "They're a bit of a leading indicator."
The collapse in Chinese share prices came at the same time as analysts from Goldman Sachs to Citibank were upgrading their already bullish forecasts for China's GDP growth.
Also, on bespoke investment group: Bear Season in China
OK - so traders pushed it down below 50 DMA, where's 200 DMA? How about the old proverb: 'every trend has a counter trend'? Notice that FXI did not break - or bounced right of 50 DMA, and the 50 DMA is way above the 200 DMA - so this could still be considered a correction. A strong correction, as strong as the bubbly rally the Chinese market saw. No one can be considered an expert to China's market - because it is not a 'normal stock exchange' market. It's a speculators/casino/government intervened one. Everything related to it should have a 'toxic' sticker on it.