Market Overview

Emerging Markets Need To Hold Support

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As I write this the market is firmly in the green, with the S&P ($SPY) up $1, and large-caps continuing to lead the charge. But the Emerging Markets ($EEM) have been lagging the global bounce since the rejection of the $41 level on the ETF.

I used the Tradespoon Seasonality chart today and found the stock right at 10-day support, $39.85. But unless $EEM can break $41 and establish new short-term highs, the downside will get tested. A break below $38 would shift the overall trend in the Emerging Market stocks to negative and we could see $36 pretty quickly.

We are still universally bullish on the overall global markets but we need to tread lightly.

Have a great trading day!

Check out the video below for more color from Tradespoon:

previous post: Defense May Not be the Best Offence in this Market

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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