US stocks fall, Chinese stocks could rally temporarily

US stocks fell on Wednesday, cutting short a global rally.

The S&P 500 fell 1.4 percent, reversing early gains that had followed advances elsewhere. The Shanghai Composite Index rose 2.3 percent on Wednesday, the Nikkei 225 surged 7.7 percent, its biggest daily percentage gain since 2008, and the STOXX Europe 600 rose 1.3 percent.

The rally in Chinese stocks could last a while more though, albeit temporarily. From Bloomberg:

Tom DeMark, who predicted last month’s selloff in Chinese stocks, said the Shanghai Composite Index may rise more than 4 percent before resuming its decline.

The benchmark gauge could climb to 3,390, staging a temporary rebound similar to its rally in July, according to DeMark, founder of DeMark Analytics LLC...

“This decline that we are anticipating is something that may be drawn out,” DeMark...said on Wednesday. “We are convinced that we will see a rally” in the short term, but “we see the markets eroding again,” he said.