Are Emerging markets about to send a bullish message to stocks in the states? Possible!
This chart looks at Emerging Markets ETF (EEM) on a weekly basis over the past 9-years. Since the lows in 2016, EEM looks to be creating 4-year rising channel (1). The decline into the lows in December saw EEM test the bottom of its rising channel with momentum reaching oversold levels. Very possible it created a “weekly double bottom” while testing triple support 8-weeks ago!
The 8-week rally in EEM has it attempting to break above its 1-year falling channel and its 200-MA line at (2), as momentum is attempting to turn up.
Joe Friday Just The Facts Ma’am- If a breakout above falling resistance and its 200-MA line takes place at (2), its sends a positive message to Emerging markets and stocks in the states.