China Weighing on Heavy Industry

Apart from the fact that the stock indices have recovered all of their earlier losses (basis the e-SPM, from 1297.25 to 1311) on headlines about the IMF jawboning about throwing its money (really public taxpayer $$) at a SPANISH bailout (which in the end will create more problems than it solves, but in the short run is just what the bears need to hear to run for the hills and cover their positions) . . . apart from that fact, I am focusing on what I think is the real world -- the ugly technical set-up in the Heavy Industry sectors.

As China goes, so goes the Basic Materials, Base Metals Mining, and Heavy Machinery industries. Right now, with the Shanghai Composite Index uninspired at best and at worst in the grasp of a 5-year bear phase, is it any wonder that Joy Global (JOY) cut guidance for the remainder of 2012, and that industrial powerhouse names such as U.S. Steel (X), Cliffs Natural Resources (CLF), and Nucor Corporation (NUE), to mention just a few, exhibit ugly and vulnerable intermediate-term chart patterns?