Anxiety in China’s $9.1 trillion stock market is now higher than at any time last year, according to a Bloomberg metric.
The Shanghai Composite’s so-called “fear and greed” gauge, which measures the strength of buying and selling, fell to its lowest level since October 2022 on Monday. The ongoing plunge has pushed stock market indicators to the brink of breaking through breaking points. 18-year trend line.
While the indicator does have a track record of signaling rallies, strong bearish signals don’t always lead to equally strong recoveries. For example, the index rose sharply during the reopening rally in November, although the selling pressure that preceded the advance was not severe.
Likewise, August’s wave of selling did not give way to a modest recovery in stock values.
Svlook
