Shanghai Composite plunging 6.5% overnight

Futures indications are trading well below fair value, suggesting stocks will open sharply lower. A sell-off on the Shanghai Composite similar to the one in late February that caused widespread panic puts the valuations of U.S. equities under the microscope and is giving investors an excuse to take some money off the table. News of the Chinese government tripling the tax on stock trading to 0.3%, as an effort to curb speculative buying activity in the market, sent the Shanghai Composite plunging 6.5% overnight after hitting record highs a day earlier.