I simply desire to amplify an splendid spider web log comment from reader Matthew C. Above nosotros encounter a daily nautical chart of the S&P 500 Index (SPY; give off chart) vs. its 20-day volume-weighted moving average. Note that we've broken below that average today, but rest good to a higher house the June highs. That keeps the uptrend intact.
China's marketplace (FXI; bottom chart), however, has been below its 20-day average for several days in addition to today has moved dorsum into its June range. Nor is Red People's Republic of China unique inwards this respect. We besides encounter Brazil (EWZ); Russian Federation (RSX); Hong Kong (EWH); in addition to Bharat (EPI) moving dorsum into their June trading ranges.
Why is that potentially significant?
The increment flush amid the emerging markets, peculiarly inwards China, has been a major driver of the recent stock marketplace rally. If those markets are getting ahead of themselves--and especially if nosotros encounter Red People's Republic of China pulling dorsum on stimulus--that would heighten questions nearly global postulate for the goods of developed nations, every bit good every bit the postulate for commodities.
This is a subject worth keeping an optic on.
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