Global Sell-off in Stocks as Volatility Explodes
This week the Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) experienced their biggest drops in years especially if you look at the lows for the week. But this was not just a sell-off in the United States, there was also a significant global sell-off underway.
In the world’s second largest economy, China, the Shanghai Composite was down big for the second week in a row. It dropped 332.23 points or 9.6% and shattered a 2 year uptrend line.
China’s Shenzhen Composite dropped 142.267 or 7.8%. It closed the week at the lowest level since September 18, 2015. Over the last 2 weeks it has dropped 13.9%.
I’ve been talking about another move down now for a while and today’s price action sure looks like a possible reversal bar on the DJIA. Of course we need continuation to confirm. The DJIA was down 48 points with the SPX down almost 12 and the Nasdaq Composite down 41.