CLICK ON CHART TO ENLARGE
Emerging Markets ETF (EEM) and European ETF (EFA) are up against key falling resistance lines. Is EEM creating a pattern just like it did back in 2007 at (1), as it kisses the underside of resistance at (2)?
The chart below reflects that both have lagged the 500 index by over 25% in the past 16 months.
CLICK ON CHART TO ENLARGE
EEM & EFA have reflected a large degree of relative weakness since April of 2011, which is when the Shanghai index broke support. (see post here)
For this relative weakness to end, EEM and EFA need to break resistance that is just overhead!
