A 1-day move isn’t worth getting concerned over. Now, if the US market is down over 1000 by the end of the week, that’s big news. China’s been in massive decline for quite a while. Any number of news items could be responsible for this, potentially making it a knee-jerk reaction by traders looking to make money on intra-day moves. After all, Saudi Arabia has now been joined by other Arab nations in severing diplomatic ties with Iran, and Obama has more than just his pen and cell phone available to him since his return from the tax-payer-funded Hawaii vacation.
Gold also rose over $20 since opening late last night (US time), spiked at 10:00 EST this morning, and has since backed off nearly $10 three hours later. So far, nothing indicating that the Crash of 2016 has begun.
Also, China’s weak data has been no secret. Remember, this is the first trading day after a long holiday weekend, and it’s a new year – psychologically a “big” deal. Sort of ….