China's main stock market index, the Shanghai Composite, fell another 1.74% today to a new 2012 low. As shown in the chart below, it's make or break time for Chinese stocks. The Shanghai is currently trading right at its prior lows from 2011. If this level breaks, it will be a nightmare from a technical perspective. With the index already down 38.12% from its highs in August 2009, Chinese investors are not looking forward to another technical breakdown.