Emerging Markets to pick direction

The Emerging Markets ETF (EEM) is nearing the end of a pennant pattern that originated  a year ago.  It has consistently turned back at the falling trendline, but has also formed a shorter term uptrend since bottoming last October.  It is sitting close to support now and will likely break out – one direction or the other – very soon.  Even if you don’t own EEM, it’s a good risk gauge and well worth keeping an eye on.

As an interesting outlier read on the EEM chart, it’s conceivable that there is actually a massive (4 year) Head-and-Shoulders pattern nearing conclusion.  I’d be surprised to see that be the case, but it seems to me like a possible read of the chart (if it breaks down from the current pennant).

 

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: