Emerging Markets are… emerging, again?

While the U.S. markets continue to churn sideways, flirting with the possibility of a major top, international markets are showing much greater cause for bullishness.  Of this group, India is probably still my favorite, though it has already made significant gains since I first mentioned it a couple of months ago.  The India ETF I’ve been tracking, EPI, is only now breaking above its 200 day moving average.  This, after forming a pretty textbook inverse Head and Shoulders pattern.  Given some consolidation, I imagine there’s plenty of upside left in the longer term.

The iShares Emerging Markets ETF (EEM) is also breaking above trendline and 200 day moving average resistance, and perhaps resolving a multi-year pennant pattern to the upside.

Brazil (EWZ) has been downtrending for years, and appears to have solidly broken above its trendline resistance.  It has a little ways to go before reclaiming its 200 day moving average.

Broadening the picture to include the entire ex-US world, a representative ETF, CWI, shows a multi-year ascending triangle and appears to be attempting to break out.


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