Can the SPX Continue to Ignore What is Happening in Shanghai?

As of today's close, the China Shanghai Composite (SHCOMP) is down 31% from its June 12 high at 5,177, this after the last several days have been laced with efforts by the Chinese Government to control, halt, and reverse the selling onslaught-- all to no avail so far.

Let's notice that the price structure has been dancing on its flattening 200-Day EMA (3,635) for the last three sessions, but has yet to rocket off of the important support MA with any authority just yet.

Inability of the Shanghai Composite to reverse to the upside despite massive Government intervention could be a scary sign for global investors largely because it might reflect a sea change in the efficacy of interference in otherwise free markets, by Governments, Central Bankers, and NGO's.

Meanwhile, does the price path of the Shanghai Composite mean anything to SPX?

For the time being, the only similarity is that the SPX also is dancing on its up-sloping 200-Day EMA too-- at 2052, which if violated and sustained, will point the index towards 2000, and then 1980, where its multi-month pattern will exhibit serious "distributive" characteristics.

Beyond that, if indeed, the era of successful Government tinkering and intervention in markets and economies is in jeopardy, then investors will flee both the China and US equity markets in a hurry... The 2008-2015 gig will be up.