Emerging markets are generally regarded as the risker trade then the SPX. They are generally leading indicator of the change in the risk perceptions around the world.
The EEM etf is a good way to track the performance and perception about the emerging markets.
This etf has been in range for some time after breaking out from the resistance of 48 but then it reverted back to channel just when the commodity selloff started. This was also partially attributed to the QE2 end when risk reduction started globally.
The ETF now is holding the grounds quite well as it held the last range support of 45 and now has formed a falling wedge kind of pattern from where the breakout is happening. The bullish breakout is confirmed above the 48 levels as it will be then above the range high.
Worth noting is the change in slope of relative performance w.r.t SPX.
Does this indicate the change in perception to risk especially when the US indices are falling?
As the emerging markets have both growth and domestic consumption not depend on US economy.
The EEM etf is a good way to track the performance and perception about the emerging markets.
This etf has been in range for some time after breaking out from the resistance of 48 but then it reverted back to channel just when the commodity selloff started. This was also partially attributed to the QE2 end when risk reduction started globally.
The ETF now is holding the grounds quite well as it held the last range support of 45 and now has formed a falling wedge kind of pattern from where the breakout is happening. The bullish breakout is confirmed above the 48 levels as it will be then above the range high.
Worth noting is the change in slope of relative performance w.r.t SPX.
Does this indicate the change in perception to risk especially when the US indices are falling?
As the emerging markets have both growth and domestic consumption not depend on US economy.
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