FXI / Nasdaq Relative Strength & Correlation

15 Haz 2022

China's Large Cap ETF (FXI) is showing notable bullish Relative Strength (RS) compared to the Nasdaq (0.26 on the Daily RS, using a 50 period timeframe). The typical RS between these two fluctuates between -0.15 - 0.10. FXI also tends to have quite a strong correlation coefficient vs. NDX, but we're finally seeing that break down (0.24 on the Daily w/ a 50 length and trending down). Conservative swing traders want to see a breakout above ~$34 for longs, which would clear the downward sloping trendline that FXI has been respecting since early 2021. While there's still geopolitical risks associated with trading Chinese equities (e.g. tensions with Taiwan), China's recent dovish tilt is encouraging for swing-trading speculators.

FXI
NDX