BRIC Exchange Traded Funds Continue To Trend Downward

 

bric-image

Equities have been rallying lately, but one group that is clearly not rising with the tide are the BRICs, i.e. Brazil (EWZ), Russia (RSX, India (INPand China (FXI). The trends for the group are bearish.

Below is a chart illustrating the combined performance of these exchange traded funds as if they were an index. The group had been trading in a consolidation range (see box below on chart) support has been violated and it is unlikely to be regained anytime soon. Currently, it is trading at the upper end of its bearish channel and I suspect this area of resistance will be a failed test. If so, then anticipate another zig-zag lower to possibly even a new low. 

(See chart below)

Click to enlarge

Click to enlarge

 

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