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China ETF (FXI) continues to be a ton stronger than the 500 index of late, as it has gained over 12% more than the S&P 500 has in the past 6 weeks, (see inset above).
FXI has nearly gained as much in 6 weeks as the 500 index has made this YEAR!
It has been very easy to find negative news on China this year, due to its poor performance. Now a multi-year RESISTANCE TEST is pretty close at hand at (2), in the chart above. We should find out soon if the 6 week rally is for real, or nothing more than a rally inside of this multi-year falling channel.
Should FXI break this resistance line, it would be a good sign for how people view China and several commodities.