My near and intermediate-term work on the iShares China ETF (FXI) indicates that the September 17 low at 30.25 and the upmove into this morning's high at 33.48 established the first coordinate in a near-term bottoming process, which if accurate argues for a recovery period that propels the FXI to the 37.00/50 area prior to the completion of the initial advance. The only question here is how much of the initial pop (30.25-33.48) will be retraced on US market weakness?  We are about to find out.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.