A few weeks ago I did a post on Slope looking at the topping action in China etf, FXI. Well, I am still short this market (via FXP, along with shorts on silver and financials) against my remaining gold stock longs, and I am being as patient as I have ever been with short positions as these markets continue to roll.
The FXI chart is now doing some interesting things even as it has made no conclusive move below the supportive SMA 50. Specifically, I noticed that the sequence of higher highs has has been broken on the latest short term peak. This has not previously happened during Hope '09.
Now we await a lower low which, along with the lousy MACD would cause RSI to threaten its support. A reasonable target on a breakdown would be around the SMA 200.
Have a great day all. Gary from Biiwii.com and Biiwii.blogspot.com
