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It’s pretty easy of late to find negative news about China. The Shanghai index has underperformed the S&P 500 by over 40% the past 2 years! This decline has the Shanghai index setting on very important support and NEEDS TO BOUNCE RIGHT NOW!!!
FXI has rallied around 8% over the past 5 weeks and finds itself at the top of its trading range. Regardless of the overwhelming negative news coming out of China, odds are high that IF…. if a breakout of its 6-months sideways channel takes place, buyers will come forward in FXI!
Coorelation risk seems high right now.