The iShares MSCI Emerging Markets ETF (EEM) is up over 30% this year. It has been a straightforward run higher above a rising 50 day moving average.
That average is being tested again, along with horizontal support in the $45.50 area, and this time the test may be more severe. The MacD momentum oscillator has been making lower highs in bearish divergence to the stock price, and Chaikin money flow has entered negative territory.
A breakdown projects a pattern target price objective to the first level of support in the $44 area.