After rallying hard since March, Chinese equities, represented by the iShares China Large Cap ETF (NYSE: FXI), could either be on the verge of another 15 percent of upside or a massive drop.
Chinese equities, according to the chart of FXI have been far outperforming the MSCI EAFE international equity index (represented by EFA) for quite a while now. Is FXI leading the way higher? Or, is EFA leading and is the FXI setting up to copy EFA's recent bearish behavior?
EFA Looking Very Weak Relative To The U.S. And Emerging Markets
Despite the upside seen in the last seven trading sessions or so, the iShares MSCI EAFE ETF (NYSE: EFA) has been a clear underperformer this year – only being matched in its misery by the U.S. Micro Caps. The EFA has broken down below its 200-day moving average and appears ...
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