SSEC Shanghai Index Daily Chart; China Slips into Bear Market

China's Shanghai Index slips into a -20% bear market. The SSEC drops -0.5% to 2845 overnight (chart is not yet updated) and was down as much as -2% during the session. The SSEC topped-out on 1/29/18 at 3590. The -10% correction was at 3231 which failed in February and March.

A -20% correction is the 2853 level which has been teased this week and fails overnight. At 2845, the SSEC is down -20.8% from the January top and officially in a bear market. The PBOC better get busy and intervene since the central bankers are the market over the last decade. China did not receive any bang for its buck with the triple R (bank reserve requirement ratios) cut yesterday.

Price has violated the lower standard deviation band so a move back to the center band at 3033, and falling, is on the table. The RSI and stochastics are oversold looking for a bounce. The chart is setting up with positive divergence to provide a dead-cat bounce but the MACD remains weak and bleak preferring to see another low (which may have been the low overnight). Caution is warranted, however, since indexes can crash from oversold levels. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.