The Shanghai Composite has given up all of its 2015 gains as concerns over economic woes reach panic intensity. The index rose 1931.67 points to register a high of 5166.35 on June 12, 2015. Since then it has lost 1956.44 points as of market close on August 24,2015.
S&P 500 index is down 4.03% for 2015. The index, which had appeared impervious to burgeoning Chinese issues, got hammered today as the global equity rout finally made its way to America's shore. While the severity of the sell-off has to be concerning, the fact that it happened towards the latter part of a notoriously illiquid month, August, seems to suggest that large funds might have taken some money off the table as they attempt to re-balance their portfolios. A look at a 5-YR chart shows the inexorable rise, fueled to a large degree by Quantitative Easing, that might need to experience a correction. The index is currently sitting just above the 23.6% fibonacci retracement level at 1887 which, if breached, could see a test of March lows at 1862. A deeper pullback might see the 38.2% retracement level at 1736 come into play.