The big news this morning is the change in tax rules for trading in China.? Officials are trying to get the recent rampant speculation under control (the SSEC is up 186% in the last 12 months) .? The Shanhai composite traded down 6.5% overnight.

The 6.5% is barely a blip so far in the parabolic curve of the market, but this could start to shake things up…

The big drop on Feb. 27 was preceded by a similar change in legal regulations in China, but it doesn’t look like western markets are too worried about today’s change — pre-market futures are down around 0.5% for US markets.