Shanghai Composite Just 3% from Breaking March '09 Low

While the world fixates on what the Fed and the ECB have up their collective sleeves to stem the sovereign debt contagion and to spur growth, it appears to me that the policy prescriptions might need to include China, as in, how to avert a hard landing?

The Shanghai Composite (SHCOMP) closed right at its July low, and is just 3% from breaking its March 2009 low! Something very dangerous could be developing in China, which could have a significant impact on global equity and commodity prices.

See both the monthly and daily charts below.