Weakness In India

Above is a daily bar chart of INP which is the ETF for the India index. You'll notice that this particular market is showing relative weakness vs. the S&P as well as many other major indices. While our S&P is flirting with the highs for the year, INP is making a much lower high. You'll also notice that resistance was tested last week which held as the market subsequently turned lower.

When we take a look at the big picture, you'll notice a very significant uptrend line which has been tested several times. A breaking of this trendline could spell trouble for INP. Being that this market is currently showing relative weakness vs the S&P, my guess is that we will see a breaking of this trendline. As always, we'll see what happens.