I last wrote about iShares China Large-Cap (NYSE:FXI) (China) in April. At the time, it was noted that former long term support had become resistance and the prognosis for Chinese equities was bearish. FXI stretched to a final high on 4/19 and is down nearly 12% from that peak. 5 waves down from the 4/19 high indicate potential for a countertrend rally to develop from nearby. Equality between waves 5 and 1 in a sequence is not uncommon and that relationship exists at 30.96 (spot is 31.11 as I type). Any strength is still viewed in a bearish context given both the impulsive weakness from the 4/19 high and 7 wave (corrective) rally from the February low.
Jamie Saettele, CMT