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.