By Chris Becker
A solid durable goods order for June in the US could not put away the fears of this rout in stocks turning into a bear market, as the Chinese stock markets crashed again following a poor profit print. A race to bonds ensued as European stocks and commodities continued to fall even as the USD slipped against the majors. The CBOE Volatility Index (VIX) spiked again, rising to a new two week high. The mood is getting more bearish by the day…
Yesterday the June industrial profit print reversed unexpectedly, which sent shock waves through the Shanghai Composite, falling nearly 9% or 345 points to 3725, well below the critical 4000 point resistance level that is has tentatively held in recent weeks. The 200 day moving average is looming as is support at 3500 points which remains key here, as seen on the weekly chart or its game over:
