With the market extended in the short-term, most of our focus is on monitoring key support levels for low-risk entries on a pullback. The EGShares Emerging Markets Consumer ETF ($ECON) is one of a few ETF pullback setups we are currently monitoring.

The daily chart below shows the sharp rally off the lows, which was followed by a few weeks of consolidation above the rising 20-day exponential moving average.

On the chart below, note the bullish moving average crossover, with the 50-day moving average crossing above the 200-day moving average. This type of moving average crossover is not a buy signal, but it does tell us that the trend is beginning to turn up:



The longer-term weekly chart of $ECON shows the sharp rally off the lows that led to a move to new 52-week highs just five weeks ago. Since there is very little resistance above, a close above $29 on the weekly chart could spark a strong rally:



For $ECON, we are looking for a pullback to or near the 20-day exponential moving average (around the $27.50 - $27.75 area).

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.