Emerging Markets (EEM) On The Verge Of A Multi-Year Breakout

From Chris Kimble: Believe it or not, since 2007, emerging markets have underperformed 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.

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.

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 ma

nage a breakout at (3), it would send a bullish message to this lagging ETF.The iShares MSCI Emerging Markets Index ETF (NYSE:EEM) was trading at $41.56 per share on Tuesday afternoon, down $0.18 (-0.43%). Year-to-date, EEM has gained 18.71%, versus a 8.15% rise in the benchmark S&P 500 index during the same period.

EEM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 77 ETFs in the Emerging Markets Equities ETFs category.


This article is brought to you courtesy of Kimble Charting Solutions.


Article appeared first at etfdailynews.com – Emerging Markets (EEM) on the Verge of a Multi- Year Breakout