Emerging Markets (EEM) to strengthen ..

If you go out to a longer term look at the S&P vs Emerging Market (denoted by the ETF EEM) you’ll see that the S&P has been on quite a ride of strength versus this asset class.

Here’s what I see … 5 waves down from the top and the 5.20 (ratio level) as being 1) 3 drives to a top 2) a .618 retracement from the high in the ratio and 3) 1.618 *a = c.

Doesn’t seem possible, does it?  Well it’s just a PATTERN and if it fails then the US equity market will vacuum up and continue to blitzkrieg this space. So, at least, now we have a level to watch.

SPY vs EEM

SPY vs EEM

 

One Comment on “Emerging Markets (EEM) to strengthen ..

  1. I see multiple up gaps… i.e. the denotation of lack of sustainable momentum. Oddly enough… and consider this is suppose to be the most liquid stocks in the world… & the world is deflating in real economies… This looks like an internet stock with no market float. You have to keep in mind the last two years has squeezed a large number of hedge funds out of the market. Based on no shorting… or shorting being extinct. This could go up another 100% … if it does go up that much the market when it does fall will fall by over 80%. Date: Sat, 6 Dec 2014 19:59:40 +0000 To: mjcurran113@hotmail.com

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