Trades,
This market is so stretched out that it has become a joke. Other than a small hiccup in November,it has been a rocket. There are so many now expecting a pullback - when there is one, I'll bet that it will be a short one as there is so much money waiting to get in and resume the ride up. They missed it the first time - they're not going to miss it a second time.
Other than the 40 pt selloff in November, it's been on a tear over the last 5 months. Way too long!
This chart is interesting for a number of reasons. I don't deny that there is a correlation, but the PBC has raised interest rates 3 times over the past 4 months. This may account for the FXI weakness. The first rate increase was on Oct 19, which coincides with the FXI drop. But, your point is a sound one, as we all know that "China is leading us out of recession". But if China sneezes, we all come down with pneumonia.
Need to pay attention to this index - sooner or later, the SPX will top out and head south. I'm betting sooner.

Thanks for sharing!
Best,
S