While most developed stock market indexes have been heading higher in 2021, the Emerging Markets ETF (EEM) has been trading sideways to lower.
The year started off with a bang for $EEM as the ETF made new highs into February before stumbling for the next 7 months.
Looking at the “weekly” chart from Marketsmith.com of Emerging Markets ETF (EEM), the downward price action has formed what appears to be a bearish descending triangle over the past few months at (1).
With key technical support breaking down, it appears that $EEM could make a “measured move” decline of 12% to (2) on the chart.
Are Emerging Markets about to submerge? Stay tuned!