Always consider hidden risks
Emerging Markets: 50% Fibonacci at Play ?
August 19 ( From TradingView )
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A few charts below are worth a look: the iShares Emerging Markets
( EEM ETF in Candles - First Chart Below ) compare to the iShares Core SP500
ETF ( IVV in the charts below showed in Bar Chart )...
EEM is underperforming Tremendously since October 2010. EEM
( on a relative basis - ratio of EEM over IVV ) is still within a huge
downward channel that started on October 2010. Last time we reached
those levels on a Relative Basis was back September 2004.
( See Second chart below - Candles )
First sign of reversal on a relative basis will be when the 20 DMA ( Day Moving Average - Yellow Line ) will cross above the 50 DMA ( Day Moving Average - Red Line ). ( See Second Chart Below - Ellipse.)
But the Real Major Reversal will be when we finally break the downward channel on that ratio that started back in October 2010. ( See Second Chart Below.)
EEM have been in a free fall compare to the SP500 Index and still within a Daily downward Channel.
( See First Chart Below )
Also quite interesting is the behavior lately of the EEM and US Dollar Index (DXY). The EEM is underperforming when DXY is strong and vice versa... ( See Third chart below )
But the most interesting tecnical factors are that we broke on the week of July 20 a Major Rising Wedge Pattern that started back in May 2009 but more importantly that we are near the 50% Fibonacci level at 34.33 where we found in the past some support ( August 2009 and October 2011) for EEM ETF. ( See 4rth Chart Below )
iShares MSCI Emerging Markets ETF ( EEM ) ( Candles / Right Scale )
iShares Core SP500 ETF ( IVV )( Bar Chart / Left Scale )
Emerging Markets: 50% Fibonacci at Play ? $SPY, $EEM #Trading #investing #eem #SP500
iShares MSCI Emerging Markets ETF ( EEM ) over
iShares Core SP500 ETF ( IVV )
50 DMA ( Red Line )
EEM ( Top Panel )
EEM over DXY ( Middle Panel )
US Dollar Index ( DXY - Bottom Panel )
iShares MSCI Emerging Markets ETF ( EEM ) ( Weekly Candles / Right Scale )