Always consider hidden risks
Emerging Markets: Back to the 50% Fibonacci Zone ?
November 10 ( 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 unable to break that Major Resistance Trendline that started back on December 16 2014. ( See First Chart Below - Thick Red Trendline - Ellipse )
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... The Break Out of the US Dollar Index on November 4th did not help the EEM cause at all... ( See Third chart below - Ellipses )
But the most interesting technical 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 retestimg the 50% Fibonacci level at 34.33 ( that goes back in November 2008 ) ; a crucial technical Weekly test for the EEM ETF indeed.
( See 4rth Chart Below - Ellipse )
iShares MSCI Emerging Markets ETF ( EEM ) ( Candles / Right Scale )
Emerging Markets: Back to the 50% Fibonacci Zone ? $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 )