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
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.