Correlation is not causation. However when trillions are wiped out in the Chinese stock market sell off one wonders if it has international effects. Some would worry a little.
Leverage in markets is a funny thing, losses elsewhere tend to bring losses closer to home. The SSEC has fallen 50% rather quickly and the Chinese Govt is threatening BUYERS that the cant sell. Question: Who wants to put new money into a market when you get your name put into a Govt black book when you want to sell? No one who is sane! It takes NEW money to get NEW highs. So unless the POBC is going to provide all the NEW money then the SSEC is very unlikely to do well, of course stranger things have happened. ha!
Other market warnings have been posted by readtheticker.com blog: Market internals stink, NYSE margin divergence to price, Handsome gains in NYSE index may be over
