China Treading Water:
There was a time not too long ago were incessant chatter about how domestic markets were being strongly overshadowed by international. That has quieted down dramatically and the daily chart below of the KWEB shows how for 2 months it has been a tough go of it against US internet players (via the FDN). Ratio charts compare action on a relative basis remember and does not mean that the 2 instruments being looked at can not act robust absolutely speaking. If the KWEB can stabilize here just above the 50-day SMA good things may begin to happen. A bullish golden cross is plausible with the 21-day EMA potentially moving above the 50-day SMA and notice the last time that occurred in January it set off a nice thrust upward. Among the top 10 holdings my favorite set up in NTES which registered the best earnings reaction jumping 15% on 5/15 and now rests just 2% off most recent 52-week highs. It is now well extended above a 106.77 double bottom breakout and look for some digestion here. A break above a possible bull flag pivot of 122.50 carries a measured move to 140. Here one can see how this has been dominant against peers BABA, JD, and PDD since the market rally lows of 4/7. Leaders show their true colors during times of stress. Pay attention.