Last week was a boring week for ETFs as our technical analysis only uncovered a handful of new buy and sell signals. However, it looks like the next shoe is about to drop on Chinese ETFs. Almost all of the Chinese ETF charts have an M pattern title to the right on a 45 degree angle. The right leg extends well below the left leg – or more classically known as a lower low. This usually means the investment is headed lower.

A possible way to profit from this potential next shoe dropping would be to buy UltraShort FTSE/Xinhua China25 Proshares (FXP). FXP's objective is to seek daily investment results, before fees and expenses that correspond to twice (200%) the inverse (opposite) of the daily performance of the FTSE/Xinhua China 25 Index. In other words, it goes up twice as much as the FTSE/Xinhua China 25 Index goes down. Keep in mind that when the index rises, FXP falls twice as much too.

We also see other warning signs in Semiconductor ETF charts. Many semiconductor ETFs are on the edge of moving into underperformance territory. We are keeping a close watch on them and if the light turns red, we will let you know.

ETFs that should underperform the S&P 500 in the weeks ahead.

• SPDR S&P International Mid Cap (MDD)
• iShares Dow Jones US Healthcare Provider (IHF)
• PowerShares Buyback Achievers (PKW)
• PowerShares Dynamic Building & Construct (PKB)

ETFs that should outperform the S&P 500 in the weeks ahead.

• PowerShares Dynamic Telecom & Wireless (PTE)
• SPDR S&P Pharmaceuticals (XPH)
• iPath DJ AIG Cocoa TR Sub-Idx ETN (NIB)
• PowerShares Value Line Industry Rotation (PYH)
• PowerShares Dividend Achievers (PFM)
• PowerShares Dynamic Mid Cap (PJG)
• PowerShares Dynamic Mid Cap Growth (PWJ)