China Could Be Breaking Out Lower, Sending Bearish Message To World Stock Markets

The global equities market has been in a tailspin this year.

But could it get even worse?

Today we look at a critical piece of the global equities complex: China.

FXI Monthly Chart

FXI Monthly Chart

Today’s monthly chart of the iShares China Large-Cap ETF (NYSE:) highlights the risk that China may be breaking below a 10-year price range (blue shade area). It is already trading below, but we’ll have to watch the monthly close. Further selling would indicate a retest of the 2009 lows is underway.

This may explain the recent bubble up in volatility. Will there be big trouble for big caps in China? Stay tuned. 

Source link

Comments are closed, but trackbacks and pingbacks are open.