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.
Disclaimer: Guy M. Lerner is the editor and founder
of The Technical Take blog. His commentary on the financial markets
is based upon information thought to be reliable and is not meant as investment
advice. Under no circumstances does the information in his columns represent
a recommendation to buy or sell stocks. Lerner may on occasion hold positions
in the securities mentioned in his columns and on the Web site; in all instances,
all positions are fully disclosed at http://thetechnicaltakedotcom.blogspot.com/.
However, their positions may change at anytime. For more information on any
of the above, please review The Technical Take's full Terms of Use and Privacy
Policy (link below). While Lerner cannot provide investment advice or recommendations,
he invites you to send your comments to: guy@thetechnicaltake.com.
Copyright Notice: Except for making one printed
copy of this newsletter or any other materials, files or documents available
from, accessible through or published by TheTechnicalTake, LLC for your personal
use (or downloading for the same limited purpose), none of these said materials,
files and/or documents may be reproduced, republished, rebroadcast or otherwise
re-distributed without the prior expressed written permission of Guy M. Lerner.
Circle Us