Let's notice that at yesterday's low the iShares Emerging Markets ETF (EEM) was 10% of its October low, compared to the SPY's, which at yesterday's low were about 1.8% off of October low. In addition, the pattern carved out from the October 27 low at 18.90 to the 27.63 high on November 4 exhibits a very bullish structure, which was followed by a correct pattern into yesterday's low. Taken together, my pattern analysis suggests strongly that the EEM has entered the very early stages of a new upleg that has as its first target a test of the November resistance line now at 24.75.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.