What to make of Emerging Markets?
The Emerging Markets ETF (EEM) is a very interesting chart. Is it a strong buy or a strong sell? It seems both cases can be made.
The weekly chart posted a huge bullish wick last week. That is often a great reversal pattern that indicates the bottom of a selloff.
But the daily chart paints a different picture. It experienced a massive breakdown and has now climbed back to the former support. This would typically be a good spot to short.
So which is it? Strong buy or strong sell? I don’t know, but it’s a pretty interesting situation.
Another very interesting, somewhat perplexing international chart comes from Hong Kong (EWH). It looked like a serious breakout earlier this year, then hit resistance from a decade ago. It pulled back to support and has created a very bullish wick on the weekly chart. I suspect this is a bullish setup. At the very least, it looks interesting.
As an unrelated aside, Netflix (NFLX) rallied 15% after earnings. Breakout? Maybe not so fast. It looks to be coming up on a 20 year old line of resistance.