Browse Symbol Stacks: FXI: shanghaichinaetfconfusingdec51.gif (1574×730)
The Shanghai index has been fairly weak of late and broke several support lines recently. Today the Shanghai index was up almost 3% today bringing it near a crossroads of resistance at (1) in the chart above....these resistance lines should be respected.
The patterns of two leading China ETF's (see two inset charts above) FXI & GXC paint a different picture, their performance is better and they are not breaking support, like the Shanghai index has of late. Investors can not trade the Shanghai index, yet they can trade the ETF's!
Are we getting confusing signals coming from China? Yes. Who is sending an accurate message? I don't know. My point in this post..."Don't overlook the message from the ETF'S!"
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