The Market's Hottest Leading Indicator Continues To Head Lower

Of late there’s been a lot of talk about the Shanghai Index, and the idea that it serves as something of a leading indicator for stocks.

This chart, showing the market’s bottom, has been making the rounds a bit.

chinese stocks SP

Well, on Monday Shanghai was closed, but it was open last night, and it’s heading lower still. The Shanghai composite fell 1.2%, and is now solidly below the 3,000 level.

Here’s the recent action (not including yesterday)

chinese stocks SP

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