I am honored that one third of this blogs viewers come from outside of the United States. Of late I have received numerous email requests from the international viewers, to update the look of the Emerging markets. See below…
CLICK ON CHART TO ENLARGE
Of late EEM has broken a multi-month rising support line and maybe of greater importance the Brazil ETF (EWZ) has broken a support line that has been in place for the past 9 YEARS!
Back in May, the “Power of the Pattern” was suggesting that no matter where you lived, the patterns at hand suggested a two-thirds chance that markets would move lower, on a “Global Basis!”(see post here).
At this time the Power of the Pattern is reflecting the same concerns today, as it did back in May…”Capital protection” at this time is the key long-term macro strategy at hand! Some day these patterns will reverse…the reversal though lies on the shoulders of the $. Until the $ reverses its latest move, EEV should do well for a while!
Amazing call again, Chris: EEV up nearly 15% today!
Hi Kimbler, very thanks for this. Excelent analys´s and comments. Andre/Brazil
Newbfxtrader…Thanks for your comment and kind words.
I think Chris will prove to be right. The emerging markets have will not do well going forward. Decoupling is not there yet. Maybe sometime in the future.
Great eye Chris. Every time I am amazed to see you pull out patterns.
Belsha…As always Thanks for the comment and quality info.
Bovespa does look a little different, yet not something I would want to own, per the pattern. My main concern is that this is the impact of GE2 and there is no place to hide! EWZ is down over twice the 500 index this afternoon and EEV is up almost 4% for those looking to score on defense. One day does not make a trend, yet odds are decent that a breakdown of support on EWZ will bring in MORE sellers.
The brazilian real has fallen quite hard these last days, not only against the dollar but also against the euro, which is an extremely good and long awaited thing for the brazilian economy. It is also the principal reason for the recent drop in EWZ: the actual chart of the Bovespa index looks very different: