Is Big Trouble about to hit China? If history is a guide, the answer is yes.
This chart looks at China ETF (FXI) on a monthly basis over the past 15-years. FXI has found line (1) to be resistance three different times in the past 13-years.
At this resistance line, it has declined 35% or more each time. Last month it created a large bearish reversal pattern while testing this resistance line at (2).
So far this month, FXI is attempting to break 1-year rising support.
If FXI closes below this support line at the end of the month, it sends a troubling message to stocks around the world!