EEM at strong resistance levels

Weekly chart of EEM.
– the resistance level at 42.5, also the october highs were broken. – now facing the resistance at 44
– given the strong uptrend of the last month, a pull back to the support (previous resistance) would be healthy


India to catch up ?

A look at the MSCI India ETN (INP), compared to China (FXI), Emerging markets index (EEM) and the S&P500 (SPY).

As said before, we see the emerging countries lagging behind, especially India

A look at the daily chart of INP

  • reversal candle
  • A higher high
  • testing the 20d MA at 65,4
  • the next resistance level is at 67
  • But, the 50d MA is about to break the 200d MA to the downside, which doesn’t make things for the better
  • A short term investment can be considered, but with tight stops (64)

Copper index decoupled from the China index

A look at the short term Copper chart (via the ETF – JJC), with a 10d and 20d MA

  • It broke below the support of 59.5
  • It is below the 20 MA
  • Volume spiked up

As I see Copper as a leading indicator of the market, this is one to watch. On top of that, I was looking at the relationship of Copper, Coal (KOL), China (FXI) and the S&P500 (SPY)

Until november, Copper and Coal were leading China and hence the US. Since then Coal, Copper and the S&P500 continued there uptrend, and China went down.

Money is flowing from the Emerging Markets to the US again, but is it then normal that Copper and Coal continu to rise ? China is the big consumer of Coal and Copper, so do we see China to go up, or Coal and Copper to go down. Looking at the chart of Copper, it might be that one to go for a correction.


Emerging markets at key support(s)

A look at the emerging markets ETF – EEM :

  • uptrend resistance line has been broken downwards.
  • volume increase is a warning
  • now siting on 50dMa, close the uptrend resistance line. This could be a fake move. A move further down could send it to 44.
  • a huge ascending triangle is forming, with 48,25 as a key resistance level.

Brazil struggling

A look at the EWZ chart :

  • Clear 79-ish resistance level
  • The stock went below the 50d MA in november, but managed to get above again
  • it struggles to keep to the LT uptrend
  • Should we worry about Brazil ? : read the following article
    The data in Brazil are troubling: Late payments on credit cards and other consumer loans jumped 23 percent in November from a year earlier, prompting government leaders to begin scaling back their easy-credit policies”
  • I prefer to stay out for the moment, waiting for a break of the 79 level