China in Bear Market, That Was Fast

The China Shanghai was down another 4.3%, so that moves their market down 19.8% for the year, if you believe that a 20% move puts you in a bear market, then that’s where they find themselves this morning. The Nikkei is lower, European markets are lower and the dollar is up but lower against the Yen. The Shanghai is getting oversold here but could stay that way.

It looks like Monday all over again and yesterday’s rally attempt was a joke as volume was lethargic. Warren Buffet is out this morning commenting on the gravity of our national debt.

HPQ had earnings last night and beat expectations but showed a shortfall of 19%, their guidance was less than stellar too.

Oil has fallen below $69 a barrel and I expect weakness in materials and commodities. What a surprise, the dollar is up and the market is down. Go do a chart overlay of the dollar and the S&P and you will be amazed at what you see. Few indicators are so dependable.

Let’s see if the bulls try another light volume attempt to rally today, the bears are feeling empowered here, let’s see if it lasts.

P.S. I now believe Brett Favre is clinically insane.

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