Emerging Markets Poised for a Pullback

By | April 22, 2016

In March, a break above the rim line of a complex cup and handle pattern initiated a rally in the iShares Emerging Markets (EEM) ETF that took it back above its 200 day moving, and retraced 50% of the range from the May 2015 high to the January 2016 low. Unfortunately, this test has been followed by a series of bearish candles on the daily chart which suggests the fund may be in pullback mode. The RSI has been in bearish divergence to the stock price and Chaikin money flow dropped below its 21 period signal average and is sitting flat on its centerline.


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