China’s stock market rallied 56% over a three-month period from mid-March to mid-June. This week, though, we’ve seen China’s market break down a little. As shown below, the Shanghai Composite has fallen hard over the last five trading days, especially over the last two. Today the index broke hard below its 50-day, leaving it open for further declines at least from a technical perspective.
So you want to see a crazy chart? The one below has you covered. Shanghai’s moves over the last decade have been ridiculous to say the least. We’d like to say that the move in China over the last six months is without precedent, but the index did the same thing to an even greater extent during the 2005-2007 period. How’d that end?