Ominous CNH-SPX Divergence

The Chinese Yuan has quietly moved to multi-year lows with seemingly little fanfare. The growing stress within Chian's over-leveraged banking system, and continued capital flight (wsj.com/articles/china-capital-outflows-bubble-below-the-surface-1474357050) suggests the pressure on China's currency will continue. The last two times the currency weakened significantly were August 2015 and January-February 2016- not good times for the S&P 500. With China obtaining entrance into the IMF SDR Basket, there's less reason for the authorities to prop up the currency. Could be important to watch going forward.