This picture is so ugly that the Shanghai Fly reported in as follows.

Bill, 89 point Shanghai debacle today.

After a first warning in the 1540s, and another at 1590 or so, the markets continued to soar and did not seem to stop. However, today has wiped out most of those gains with the Shanghai Composite Index closing at 1588.97 on higher volume.

I'm not sure where we'll end up in the next few days, both up and down seem possible in the short run. But I have not entered a position yet, as I do not feel it is safe to buy at such levels. It's still in Bill's Distribution Zone, probably not in the Accumulation Zone.

The next few days/week will be interesting.

Yours, "The Fly"

Next, I'm going to focus on the Bank of Japan because issues seem to be emanating from there as much as they are from the Fed. Traders ought not think that this equity market pull-back is a strictly U.S. thing.

It is a global phenomenon.