Chinese equity market was in turmoil in recent weeks amid ongoing concerns of an all-out trade war with US. Accusing the U.S. of launching the largest trade war in economic history to date China has implemented retaliatory tariffs on 545 items worth $34B in response to the Trump administration on July 6 imposed 25 percent duties on $34 billion in Chinese imports. The Invesco China Technology ETF (CQQQ) plunged 7.7 percent YTD. Now the question is whether recent selloff is a pause that refreshes or it’s a beginning of something worse? Below is an update look at a trade in CQQQ.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.
Chart 1.1 – Invesco China Technology ETF (weekly)
Our “U.S. Market Trading Map” painted CQQQ bars in red (sell) – see area ‘A’ in the chart. After a strong run of outperformance since late 2015, CQQQ peaked in late 2017 and rolled over. The mid-June selloff pushed the ETF below the 1-year moving average, the…Click here to read more.
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