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Will We Follow China Into A Bear Market?

Weakness in China dragged down world markets on Monday with the Shanghai composite diving 6.74 percent to a three-month closing low. That's its second-biggest monthly loss in 15 years.

Here in the U.S. China's sharp sell-off dragged down industrial and natural resource companies as commodities prices slumped.

"Investors in the United States felt it was important for China to help lead the path to economic recovery," explains Bruce Bittles, chief investment strategist at Robert W. Baird. "If their markets are going to misbehave, it opens the question of whether they are going to see a recovery."

So what's next for China? Seems like a good time to consult the charts with technical analyst Greg Troccoli of Opalesque. Watch the video and see what the patterns suggest!


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