Global Stock Market Showing Signs Of Pulling Back

We’re starting to see hints of a global pullback for the first time all year.

This week, we saw Emerging Markets (NYSEARCA:EEM) make a lower low and confirm a key trend break of the year long uptrend.

Emerging Market ETF (EEM) Chart

eem emerging markets chart trend line break_pullback_stocks_december

The All Country World Index ex-US (NASDAQ:ACWI) is trying to do the same.

acwi all world stock market index_pullback_decline_december_news

If these breakdowns do lead to lower prices and not sideways action, we have some very easy to define old resistance areas to fall back on.  42-43 in EEM and 44-45 in ACWX.

Breakout Retest?  EEM/ACWI Charts…

eem emerging markets etf breakout price support_pullback_december

acwi all world stock market index breakout price support_pullback_december


From these levels drops to those new support areas could give us solid 10-12% pullbacks.

Can you imagine how negative sentiment would get if that were to happen?  If we could get that type of reset into such a good risk/reward scenario, that’s our opportunity of the year.

Maybe the market finds its footing soon.  But maybe we get there.  If we do, you know what I’ll be doing.


Twitter: @ATMcharts

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.


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