Shanghai Slowdown - $FXI $GXC $CHIX $AUDUSD $DXY

The Shanghai Composite snagged for a 4.4 percent drop following more than a 20 percent rally this year.

However, the fall may just be the beginning after it we showed that the price was hitting mathematical limitations on top of broadening volume issues.


"Funny money leading Shanghai Comp higher. We see how this ends. Weekly z-score 2.23. Intermediate TACVOL score approaching 3. Price moving through 2.5 sigmas. Subscribers got a good picture above global equity volume + #yuan picture last week.#China FXI USDCNY."

Additionally, China's woes aren't in the rearview. The data continues to be less than optimal, and yesterday's lending data showed a sharp deceleration from January's record nominal level in lending.

Expect a 50% Fib. retract in the Shanghai Comp. to 2791.

Visit the free Macro Strategist blog for additional charts: themacrostrat.com/2019/03/10/the-shanghai-slowdown/