Emerging markets outperformed the S&P 500 by 300% in the time period below–

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Since May of last year, the 500 index has out performed EEM by roughly 15%, reflecting relative underperformce in the Emerging markets. 

The patterns of late in EEM could be concerning…see why below-

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EEM ran into trouble in 2008, after breaking support and kissing the underside of falling resistance at (1) above.  Currently EEM is kissing the underside of broken support, at falling resistance and its 61% retracement level.  The global markets are highly correlated, more so on the downside. 

What would help the bullish case for EEM and the S&P 500?  EEM to bust above its 61% line and resistance.

Keep a close eye on EEM in the weeks ahead to see if the “Emerging markets are about to Sub-Merge in price!”