Chinese stock market facing heavy swings today. From more than 3% down to almost 1% up and again back to red, down -2%. Despite all the swings, today's move is relatively small compared to yesterday circuit breaking 7% plunge (probably would have dropped more without circuit breaker). PBoC has also injected $20 billion into the banking system to keep rates down.

So, is China's stock market stabilizing in absence of another big day of selloff or is it just taking a breather - let history be the guide

Looking at historic 10 biggest moves (Yesterday's fall isn't one of them), it is evident, in most cases stocks don't face turmoil on next day. In 40% cases stocks have closed in negative and in 20% cases it has plunged more than 5% next day. Average movement for next day has been marginally positive (+0.29%).....is there still hope then.

So, today could very much be a breather and from the index's move today selling pressure is quite evident.

Shanghai composite is currently trading at 3250, down -1.5% for the day.