By Brad Tompkins
The Emerging Markets ETF (EEM) closed at a pivotal price level yesterday, just below its 2 month range and between the 50 and 200 Day Exponential Moving Averages (EMAs). This area around 40.50 is an important confluence of support.
With this in mind, it wouldn’t surprise me to see a fake out jab lower (to fill the early September gap at $39.75) followed by a very important attempt to get back over $41.00 and the 50 day Exponential Moving Average. Note that a failure to retake and hold $41.00 will keep me on the sidelines in spite of the sector relative outperformance. See chart below.
More charts found here.
No position in any of the securities mentioned at the time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.