Many news sources are reporting that stocks are slumping for a second day on the back of the Shanghai index losing 8.8% of its value on Tuesday. However, looking at the web page of the Shanghai stock exchange, the index seems to be up by almost 4% on Wedesday. Is there a negative news bias on economic issues this week?
Update – According to the FT, bloggers seem to think that China was not the cause of the mass sell-off.
Trader Mike seconds that, and runs through the charts. “The selling was broad-based today [Tuesday] — 89% of Nasdaq stocks were down and 84% of NYSE stocks declined….I’ve said before that this move higher felt like a game of musical chairs and today the music seems to have stopped for real. There’s a whole lot of technical damage in the indices. All the indices crashed through their 50-day moving averages today.”