Sunday, August 16, 2015

EEM Emerging Markets ETF Weekly Chart in Bear Market -20% Off the Tops

Emerging markets slip into a bear market down -20% off the tops. A -10% move lower from a peak is a correction and a -20% move is a bear market. A -20% drop from the peaks at 44-45 is 35.2-36.0. Price is at 35.53 with a low last week at 35.25. The indicators are mixed with stochastics oversold and positively diverging along with the money flow both wanting to see a bounce, however, the RSI, histogram and MACD line are weak and bleak wanting to see lower lows in price after any bounce occurs say for a week or so on this weekly basis. The monthly chart remains weak with indicators pointing to lower lows in price on a monthly basis so EEM may remain weak into and through the end of the year.

The stochastics and money flow indicate time for a relief bounce but as mentioned followed by more weakness say as Labor Day comes and goes. The 34.5 is important support from 2013 so price may hold this level and trade through the 34.5-37.5 channel. if 34.5 is lost a move down to 32.0-32.5 would be anticipated. EEM is not attractive from here on the short side nor the long side. A potential long trade may set up in early September once all the weekly indicators show possie d. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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