US Markets following Shanghai – DOWN
More on this later, but China cracked on Friday and the US and other “developed” markets including the US followed suit today. Shanghai has been the leader in the bear market rally from the March low, and it has been down over 20% in four consecutive weekly losses. This bodes ill for the US — we are likely to get at least a 5% to 10% correction in the short term, stay tuned for a more detailed analysis…but today looks ugly.
