Chinese markets dive below ground “zero”

I thought that the “bottom” for the Shanghai Composite Index was at about 3100. Yesterday the SCI dropped below 3000.

SCI Aug 25th 2015 Yahoo

SCI Aug 25th 2015 Yahoo

I think Shanghai at 2950 is undervalued now, but I am no longer sanguine about when it might hit a floor and begin to bounce back. The speed of the decline in the last week indicates that even 2500 is not impossible. The risk is that it will drag the global markets down as well.

Perhaps the turnaround can only come when oil price has dropped to $30/barrel?

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