CLIFF NOTES: note on the EEM chart below the “time” and “price” pattern that has completed for time but, perhaps, we’ll got up and see 45 as the target. This is very key as it has held the EEM back for over a year. The basic concept of polarity is shown w/ regard to the blue arrows. Now, take a look at the second chart – it’s Crude and EEM on top of each other. They have moved pretty closely together … so, now, the EEM chart get’s interesting. Our thesis is that the EEM pattern will fail – which will send Crude higher OR it will work causing a sell off in the EEM here or around 45 and therefore exert pressure on Crude Oil. Note, Crude closed at the .786 last week ..
Nothing to do, yet. But watch these levels .. .closely.
