Our previous warning of a likely top in the i-Shares MSCI Emerging Market Index Fund (symbol: EEM) remains intact. Now we can add i-Shares FTSE China 25 (symbol: FXI) to our warning list.
Figure 1 is a weekly chart of the FXI. The bright red dots are key pivot points (or the best areas of support and resistance). Last week saw a weekly close below the most recent key pivot point at 42.01. This is bearish. Support is now resistance. It should also be noted that prices gapped below the key pivot point, which is never a good sign.
Figure 1. FXI/ weekly
Hmmmm, likely tops in EEM and FXI — emerging markets and China — everybody’s favorite theme. Looks like Mr. Market is up to its old tricks of hurting the most participants.
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