Analyst: China faces continuing depression-era market correction

Chinese stocks plunged Monday, and declines of the Shanghai Composite Index since March – which parallel the Dow Jones Industrial Average fall in 1929 – will continue, according to an analyst who predicted Shanghai’s bottom in 2013.

Analyst Tom DeMark predicts the Shanghai Composite Index will sink to 3,200 over the next three weeks. On Monday, the market fell by 8.5 percent to over 3,725 – its worst selloff in eight years. Since a June 12 peak, the Shanghai index has lost 38 percent of its value.

In 1929, the Dow Jones lost as much as 48 percent of its value.

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