Despite monetary easing, restrictions on stock sales, and numerous witch hunts, the Chinese equity market has followed other world markets in breaking below the Aug'2015 low. The Shanghai comp' settled -6.4% @ 2749. Regardless of any near term bounce, bigger downside targets are the 2500s, and then 2K.
*the China market will be closed for 'spring festival' from Feb 7'th-14th
The monthly candle is confrming what was indeed a bear flag that developed across Aug-December.
In theory, its a straight run to the 2500s, and if there are a few black swans this spring in the USA/EU, then the Shanghai comp' is going to fall all the way back to 2K.
Econ/Market chatter from Schiff
Wed' will see New home sales and the latest EIA oil report.
*the FOMC will issue a policy statement at 2pm. There will NOT be a press conf' from Yellen.
Goodnight from London