China Falls Hard, Losing 6.74%

The Shanghai Composite broke hard to the downside once again on Monday falling 6.74% for the day. With prices having gone parabolic into the beginning of August, the Composite topped and quickly turned to the downside.

With China having led the recovery in global equity markets, the rapid downside fall is worrisome. The Composite is now technically into bear market territory with prices over 20% off the highs. This fall will likely reverberate through the rest of the world in due time.