Two Chinese Death Crosses

Today we will reflect on the Hang Seng and Shanghai Composite Indexes:

We note that the Hang Seng has completed it's Death Cross just days ago, and current index values are far below the 50 day MA.

We have been following the Shanghai Index for some time and note its Death Cross was made back at the end of March. It's current value is some 500 points below the 50 day MA.

The action of these two stock exchanges does not bode well for the balance of the Chinese economy, the property market in particular, as they look six to twelve months forward. We are in agreement with Marc Faber on this, that a Chinese collapse is likely within the year.