The Shanghai Comp dropped -6% yesterday and USA stocks are shrugging this off. A few more drops like that however, could be catalyst for USA breakdown. 

This is the closest index available on TradingView, what they are calling Shanghai Class A. Note, this doesn't include yesterday's bar as the index is EOD data which kicks in USA time. So really it should be about -6.4% lower than 3038 or roughly 2845. This places it well under the 1HS1 and looks like we should see YS1 test at 2652.

Here's the daily; again picture the price near 2845. Really this had huge rejection from FepP without even tagging the level. There is an ETF for this (inverse Shanghai CHAD) but I cannot recommend a big position after -6% in the base index. But maybe 1 unit if looking to add on the short side. It is a not good entry at all but the worst downtrends can be forgiving in that regard (like buying the strongest uptrends). There also is a regular (not inverse) ETF ASHR that mirrors Shanghai and updates in real time, but due to some distribution gap we cannot use the pivots on it this year. 

I was talking about shorting FXI the last few days and so far this is moving in the right direction. I noticed that several emerging market ETFs had poked above FebPs while FXI had not. 

FXI is still trying to hold its 1HS1 but note this has already broken on a weekly close 3 bars and the last closed bar (small blue) looks weak. If this goes we could see YS1 or lower. 

And here's the daily FXI with medium term levels. Of all the other hedge / short vehicles I started mentioning last November (EEM, PIN, RSX and EWZ) it is the one that has remained below all pivots since that time. And therefore the one you could still have shorts, or if not, the first choice for a global short.