cryptocoinsnews.com / VENZEN KHAOSAN / 28/07/2015
China’s Shanghai Composite Index crashed through support on Monday and resumed decline as investors could not sell Chinese company stocks fast enough.
CNBC eloquently reports that, following three weeks of relative stability in mainland markets, Monday saw the Shanghai Composite Index resume decline in its worst one-day drop in eight years. Readers will know that “eight years” marks the first round of sell-offs heading into the 2008 “Credit Crunch”.
Significantly, the index sliced through the psychological 4000 support level without pause as paniced investors rushed for the exit.
CCN.LA partner xbt.social presented analysis in early July illustrating that the Shanghai Composite Index crash was incomplete, both technically and psychologically, and that decline would resume. Today, we extend that analysis: