FINANCIAL ICEBERG
Always consider hidden risks
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 TECHNICALS
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 )


​​​








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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










RATIO
​iShares MSCI Emerging Markets ETF ( EEM ) over
​iShares Core SP500  ETF ( IVV ) 
50 DMA ( Red Line )​


 
EEM ( Top Panel )​

CORRELATION​
EEM over DXY ( Middle Panel )

​​US Dollar Index ( DXY - Bottom Panel )


Financialiceberg.com


Financialiceberg.com


Financialiceberg.com





iShares MSCI Emerging Markets ETF ( EEM ) ( Weekly Candles / Right Scale )



Financialiceberg.com