General market is still very weak. Each time we had a big rally, the market gave it back either the next day or the next couple of days. In this kind of market condition, even the sectors which are relatively strong can be dragged down by the underlying downward trend. The chart of S&P 500 index shows that the 13 week EMA and 28 week EMA keep trending downward. The STO [15,1] is below 50 and having trouble climb above 50. Holding cash at the sideline and waiting for the market to turn around is the best thing we can do now. Patient will be rewarded in the long run.
In the earlier blog dated 8/15, we discussed about FXI. I pointed out that $40 seemed to be the support level. Unfortunately, that suppoet level has been broken, and most likely FXI will continue its downward trend.
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