Emerging Markets: Hello resistance!
Emerging markets have had a very rapid rise of late. But it appears the run to daylight has come upon darkness. Both emerging markets collectively (EEM) and individual entities like Brazil (EWZ) have hit resistance trend lines. First, EEM:
EWZ’s very rapid recent ascent appears to have hit an obstacle as well.
Japan (EWJ) is already in a downtrend, but it too hit resistance this week.
A commodity often associated with emerging market growth, copper (JJC), also appears to have hit resistance. It fell through support on a 4-year bearish falling triangle last week. This week provided the obligatory bounce and re-test. It looks likely to fail at the moment, and we’ll see if new lows confirm that read.
With so many of the high-momentum leaders having fallen way off their highs, it’s possible that the long-awaited top has arrived. We shall see. Have a great weekend, all.