As soon as I wrote:
"We've gotten about 15% (to the downside) out of the Shanghai index and it may be time to re-think the master plan for world domination (ours, not China's)in yesterday's "China's Conference Board Leading Index Spikes, at Odds With Shanghai Stock Index", I thought "What's a word for arrogant overconfidence?". Then I hit the "send" button.
The index is holding 1% above Monday's 44-month lows."
Sure enough the index promptly traded down to 1,999.48 before closing at 2,004.17, multi-year lows on a closing and an intraday basis.
Here's Doug Short at Advisor Perspective:
Last night the financial press featured the decline in the Asia-Pacific markets: "Asian Stocks Fall on Investor Concern on Stimulus Effect" and "Asian shares fall on wariness over Spain" (more here).
Japan's Nikkei fell 2.03%, dropping it below the 9,000 level. But that's a line in the sand that the Nikkei has crisscrossed many times.
More striking was the 1.24% selloff in the Shanghai Composite. Why? The index briefly dipped below a more significant line in the sand -- its 2,000 -- hitting an intraday low of 1,999.48 before closing at 2,004.17. Will the 2,000 level provide support?