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How interesting that the Shanghai index and the 500 index are setting on support, dating back to the 2009 lows, at the same time! Sure glad these markets aren’t highly correlated!!! Flag patterns suggest a big move is ahead, with no direction tip of the hat.
Game Plan…Follow the breakout/breakdown of this multi-year pattern. This pattern is sloppy and choppy, no key direction.
EEM has been in a sideways pattern since last fall…until a good pattern presents itself, why not stay away! Remain overweighted in the PFF/High yields of the world, collecting a 6-7% yield until these pattern resolve themselves!