The enclosed comparison chart shows several Latin American ETFs. Let's notice that the iShares MSCI Mexico Index Fund (EWW) chart shows a high-level bullish consolidation pattern developing. My near-term work indicates the EWW put in a significant low coordinate this morning at 60.15 within the coil, on the way to revisit the top of the pattern at 62.50-63.00 next.

Just beneath EWW on the chart is the iShares S&P Latin America 40 Index (NYSE: ILF), a broader Latin American ETF. My work indicates the ILF has ended a complex 3-month correction from its 54.87 to today's low at 50.11, where it has pivoted sharply to the upside off of both its sharply rising 200 EMA and its 9-month up trendline.

If today's low and upside reversal is as significant as my technical work indicates, then the ILF is in the very early stages of a new upleg within its longer term bull market.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.