The largest drop in the Chinese Stock Market has occurred as the market crumbled in a horrific and devastating meltdown. Former Federal Chairman Alan Greenspan warned about this a couple of weeks ago and still no one listened. The Shanghai Composite Index has been slammed into submission. It is a wonder how people actually believed that it would never go down and continue to climb forever.

Indeed this irrational hopefulness is always a sign of a market top. Increased regulations to control the gambling casino came too late and the triple taxing trick of Chinese regulators to try to bring some reality into play did not work. A 20% drop in one-week was predicted was about what the Online Think Tank predicted and believe we shall see another minimum of 4% dip.

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