China & Other World Markets Breakdown

As US Markets forge ahead, I wanted readers to take note of developments occurring in several Key world markets.

Of particular interest is China which just lost a key support level. It seems like just yesterday but 3 years ago this August we saw the effects of a China mini devaluation of the Yuan. We opened down 1500 points down. Then we had 6 months of turmoil that culminated in the Jan / Feb 2016 flush.  With the trade debates swirling, I think its smart to pay some attention to the Chinese Market.

Aside from China, several of the other larger exchanges, namely So. Korea and Hong Kong are following suit.  Brazil has it’s own can of worms to deal with. Much of the problem for the Latin American and other Emerging Market economies is the rising US Dollar.

Below is a chart blitz of the developments I found interesting. They are the Weekly charts of the exchanges. When looking at world markets, I like to look at the exchanges themselves vs the tradeable ETF’s to negate the currency effects often present in those instruments. Here goes….

China Weekly ( $SSEC )
This market lost its 2 year uptrend in early 2018. It has subsequently lost key support at 3000.  Under 2600 and “its over”.   Tradeable instrument is $FXI among others.

So Korea Weekly ( $KOPSI )
A significant bear flag is playing out which, more or less, targets key support around 2200.  Below 2200 its looks like nothing but air for a while. Tradeable ETF is $EWY

Hong Kong / Hang Seng Weekly ( $HSI )
Chart isn’t terrible but you can see price slipping beneath key support as shown. Treadable ETF is $EWH

Brazil Weekly ( $BVSP )
Brazil has been in free fall for weeks as you can see. Time will tell if it can find its footing here or if another leg lower is in the cards. Watch for an oversold bounce which could set up a massive head and shoulders top down the road.  Tradeable ETF is $EWZ

Concluding Remarks
Anyhow, keep an eye on Asia, especially China and Japan. Even if you aren’t inclined to try and trade them, at some point they will hit the headlines, and you’ll be 3 steps ahead.

Thanks for reading and hope it helps.

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