Here is my chart of the week. For everyone who likes Charts and signals I am going to be doing a chart of the week every week.
The first one ever I think is a doozy. It is signaling something well before the market itself if it continue to play out.
Emerging Markets – EEM
The Dollar was ripping higher, the Yen devaluing, gold ranking, and the Euro breaking multi year support. Then I noticed something.
Emerging markets were breaking down then did something countertrend to everything that has led the charge. It bounced and bounced bigly. Look below, EEM has ripped off the lows putting in a double bottom and breaking trendline resistance. The RSI is very bullish, MACD crossover positive, and the 200 day MA held like a champ.
I said in my weekly closes that the USDJPY comes down now and EEM is looking very positive.
I continue to bring up the possibility that consensus it wrong about the dollar, gold, bonds, euro.
Reiterating my stance of bearish dollar, bullish euro, emerging markets (have been for a month), gold, and bonds.