So, guess, of late, all the rage is the EEM new bull market.
VERY HARD to believe but … let’s remove the subjectivity and pull out some patterns:
EEM:
- banging right into .618/.786 retracement confluence – usually very strong R or S. in this case R.
- Note – a basic projection takes us up into the 45-46 area
- Double trend line resistance
HYG – high yield debt
- note, it’s been hanging at the .618 for basically 4 months … sure looks like it wants to break out higher.
IF HYG breaks the .618 expect the EEM to target the upper zone of the red box …
IF HYG does not break above the .618 and starts back down THEN perhaps the EEM will start down from current levels.
either way, believe we can goose a little more in the EEM world and the HYG world but .. stiff resistance ahead.
Also, note how correlated HYG (high yield DEBT) is w/ the EMERGING MARKETS (EEM) … hmmmmmmmm
Bart
