Remember the good old days - OK, it was last year - when all things China were just great? Everything on the red planet was going up. Well, since we've all been so preoccupied with the Uncle Ben's Kredit Krunch and soaring oil guess what has been happening over there?
What goes up, must come down. And since these parabolic moves like to come down in a mirror image we can presume that there is more to go.
And for you technical analysis propeller-heads, check out weekly stochastics. A 50-line is drawn instead of traditional overbought/oversold lines and we can see that in bull markets the indicator stays above it. In bears, it stays below. It's below now.
You know, India is kind of similar on the charts. Weren't these two supposed to be driving the global economy and demand for commodities? Me smells a fishy theory.