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Today's Monetary policy shift by China's Politburo, saying they will embrace a "Moderately loose" strategy, is the first real shift on monetary policy in 14 years. They also indicated a more proactive fiscal policy, so the combination has caused a big jump in FXI2.27% , KWEB3.30%  as this indicates much greater easing ahead.

China has made a very good recovery in recent days following nearly a month of sideways churning. The near-7% gains in China's Technology ETF (KraneShares CSI China Internet ETF- KWEB3.30% ) is set to make the highest daily close of the year after rising rapidly back to near the highs of its recent range. Additionally, it's notable also that FXI could confirm its first MONTHLY TD Sequential buy signal by the end of April with a close over $24.02. Technically, gains back over $25.02 should help this rally extend up to the low $30's. Short-term, trends are bullish and a daily close over $27.42 in KWEB should help this rally to 29. While greater intermediate-term strength is necessary before weighing in on the prospect of gains throughout 2024, i anticipate that rallies into late May/early June are likely for China's Equity market. Oppenheimer reported some bullish options flow earlier this morning on KWEB, with 25k August 24 puts being sold vs. buying the August 28/34 call spread 1x2. (25k by 50k for a $0.46 debit)

KWEB3.30%  (KraneShares Internet ETF) has successfully broken out above its 7 month downtrend line which is bullish for Chinese Equities. I discussed this last night and expect upside followthrough For China