Let’s jump outside the U.S. and look at some major markets. We begin with China, by way of the FXI, which actually had its peak a full sixteen years ago (!!!!!!!!!) and has been trying to recapture its former glory ever since. Let’s face it, they are a communist dictatorship, and that simply doesn’t lend itself to creativity, innovation, and true prosperity. They have terrorized their billion inhabitants into compliance, on pain of death, but that is not a sustainable business model.

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Here we see the international markets have continued to respect their broken long-term trendline for its new role: resistance. Recently, prices have meandered within small consolidation zones, but the overall failure of steady price ascendency is over.

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The somewhat broader fund, IEFA, speaks of the same tale. It is completely plausible that the face-off of this pattern has already resolved to the downside, since we are well within the confines of the green tinted area (AKA, we have a failed bullish breakout), and the past several weeks have had price bars cleanly below failed intermediate-term support.

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