Forewarned is Forearmed

Only last week we drew readers’ attention to the technical aspects of the parabolic rise in the Shanghai Index.
Today the Shanghai Index semi-crashed by 8.8%

Here’s some relevant news items:

  • China stocks sink 8.8 pct on crackdown fears Reuters – Tue Feb 27, 7:25 AM ET

    SHANGHAI (Reuters) – Chinese stocks plunged nearly 9 percent on Tuesday, erasing about $140 billion of value in their biggest fall for a decade, amid fears that authorities would crack down on speculation that drove shares to record highs.

  • Stocks plunge after big decline in China AP –

    NEW YORK – Wall Street fell sharply Tuesday, joining a global stock decline sparked by growing concerns that the U.S. and Chinese economies are cooling and that U.S. stocks are about to embark on a major correction. The Dow Jones industrials dropped more than 180 points.

  • Stocks sink on China, economic concerns Reuters – Tue Feb 27, 10:01 AM ET

    NEW YORK (Reuters) – Stocks tumbled on Tuesday after a weaker-than-expected economic report and a sharp fall in China’s main stock index unnerved investors after two consecutive days of Wall Street losses.