The steady move higher in the iShares Emerging Markets ETF (EEM) this year is faltering. A regular series of higher highs and higher lows ended this month, when the EEM closed below its October low last week.
The fund was able to bounce back above that low and briefly recapture a four month uptrend line, but that advance was thwarted by resistance at the 50 day moving average. Today it is trading back below the trend line.
Chaikin money flow has been declining going into the most recent high, and now is below its centerline. It suggests that the EEM is under distribution and continued price declines will likely accelerate the selling.