This breakdown in [[FXI]] is large and should not be discounted. It has failed at the 50 day and is well on its way to test the 200 day average. As bearish as this is, remember, it takes the bands a while to work and achieve the desired effect on the bulls. Read here for a primer: Bulls Get Banded. Also, if you are fan of breakdowns out of triangles, read my previous post HERE where I highlight the FXI triangle.
Some emphasis should be placed on the fact that FXI is not oversold, and has plenty of room to develop momentum on the downside before bouncing.
However, as the bulls’ are still in possession of their business, it is likely that there will be a lot of talk about the Olympics, the U.S. being only 20% of the Chinese economy, blah blah blah, and all this will definitely create a volatile trade.
Most importantly, should FXI trade beneath its 200 day average, it will be within the Bear Market zone. That may put a damper on the global growth and decoupling theories.
Nice
HK down a g tonight
Yeah, how could I not help but notice, via the KILLER IBC embedded QUOTE BOX!
Who else in the blogosphere is offering that kind of quality, for free? And according to the Russian to my right, The Fly has ONLY 9 VOTES!
Something is seriously wrong in the world.
stock futures added.
I owe you a thanks. I wouldn’t have bought into FXP if I didn’t see your post about it. Its been one of the few positives for me the last couple days.