Stocks trading in Shanghai are off 25% from their cyclical bull market peak 0f 3500 which was reached in the summer of 2009. A decline of more than 20% is viewed by many as bear market territory. According to The Vanguard Group “there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period.” Shanghai now qualifies.
The secular (Long Term) trend remain is bearish as well as the cyclical rally failed to decisively reach above the 38.2% Fibonacci level. A bear market in China can directly effect global equity markets as noted here.
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