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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
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Kokomo

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Sunday, July 10, 2016

U.S., European & Chinese Financial Weakness

In my 2016 Market Forecast post of December 29, 2015, I mentioned three ratio charts worth monitoring for 2016.

They show the strength/weakness of the:
  • XLF (U.S. Financials ETF) compared to $SPX
  • EUFN (European Financials ETF) compared to $STOX50
  • GXC (Chinese Financials ETF) compared to $SSEC
The following three updated Daily ratio charts show that U.S. and European financials are weak (and weakening) compared with their respective Major Index, so far, this year, while China's financials are also weak and mired in a long-term trading range, just above major support.

Even if U.S. equity markets do break out of their long-term high-basing trading range (as described in my last post), none of these three ratio charts fill me with much encouragement to project that such a rally could last very long if we see continued weakness, and, especially, a deterioration in these Financial ETFs compared with their Index.