Who wants to buy the China dip?

The bounce from 3373 is almost certainly complete, having maxed out at 4184. The Monday decline of -8.5% @ 3725 has naturally spooked many. Not surprisingly, the Chinese leadership are now suggesting all those in the trading community to refer anyone who dares 'maliciously sell/short' the market to 'the authorities'.


China, daily

China, monthly

Summary

The Chinese drama continues, with a starkly bearish Monday decline. All manner of reasons are being attributed to the fall, but regardless of whichever one you prefer, price action sure isn't bullish.

Downside to 3200/3000 zone looks a given.. the only issue is whether 2500... and considering a time window into early October... the latter looks easily viable.

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Looking ahead

Tuesday will see the FOMC meeting begin.

In terms of data: Case Shiller HPI, PMI service sector, consumer con', Richmond fed'
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Goodnight from London