Since 2007, Emerging markets (EEM) have under performed the broad market by nearly 80%. Below compares the performance of the S&P 500 to Emerging markets ETF EEM, since the highs back in 2007.
CLICK ON CHART TO ENLARGE
Could this lagging performance be coming to an end? For this lagging performance to end, it first has to accomplish an important breakout, see chart below.
CLICK ON CHART TO ENLARGE
EEM has created a series of lower highs along line (1) at (2). This line was last touched in 2014, where it peaked and soon lost over 25% of its value. EEM is kissing the underside of line (1) again at (3), as the month of May is coming to an end.
At this time, EEM is facing a critical test of resistance, as it is kissing the underside of more than one line at (3). Over the past few years, this is a price point where buyers stopped coming forward. If EEM can manage a breakout at (3), it would send a bullish message to this lagging ETF.
Website: KIMBLECHARTINGSOLUTIONS.COM
Blog: KIMBLECHARTINGSOLUTIONS.COM/BLOG
Questions: Email [email protected] or call us toll free 877-721-7217 international 714-941-9381