FXI (Large Cap China) Weekly: 1/17/2016
FXI, the large cap China ETF has fallen apart. Former support, specifically the line that extends off of the February 2009 level and was support in August 2015, will be watched for resistance later in this year. So, where’s support? The only level that we can come up with is a parallel, which is just above 27 over the next few weeks. That’s 9% from current levels (currently 29.70). With the world trading off of China at the moment, respect the potential for more downside before we reach the slope of hope. Also, former support (line that was support in August…it’s near 34) will eventually be of interest as resistance.