I've been following the China iShares, FXI, for a long time now and I noticed that Maoxian posted about it nearing its all time high. This reminded me of the time when the talk was that FXI might be overextended or possibly reaching a top. At the time, it sure looked that way. I even posted on my old site saying that the trend might be over but the more I thought about it, the more I wondered if my initial call was wrong.
Something didn't seem right to me so I built a classification model to analyze FXI's trend. I was surprised when the model remained long throughout the selloff. You can see the charts I posted on January 31, 2007 and April 6, 2007 on my old site. I even reiterated FXI's UP trend on one of my first blog entries here.
As of today, the trend still remains UP.