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Sentiment Turns More Bearish Toward Emerging Markets

Published 11/27/2014, 12:20 AM
Updated 07/09/2023, 06:31 AM

iShares MSCI Emerging Markets ETF (ARCA:EEM) Relative To iShares MSCI ACWI Index Fund (NASDAQ:ACWI) Into The End Of The Year

Prices are trending lower once again, with critical support from February 2014 now in sight. There is risk of a break beneath here, as the RSI turns lower also, signalling further Emerging Markets underperformance into early 2015. A break back above the moving average would help bring some stability, with a more bullish tone confirmed above the trendline from 2012, but this is not expected, as investor sentiment turns more bearish within the dominant bear trend from late 2010.

Money managers are advised to maintain an Underweight stance to Emerging Markets into the end of the year.

Emerging vs Global Markets From 2007

Latest comments

EEM jumped over 3% on 11/21 on 3 times average volume above both its 50 and 200-DMA. It has since found support at its 200 DMA and is above previous resistance at $42.15. In addition the MACD and RSI are moving higher and the next resistance may show up 2% higher from its current $42.35 price.. All the above suggests "Bullish". What specifically do you have to support a Bearish outlook for EEM except for the ratio indicated in the article?.
http://stockcharts.com/h-sc/ui?s=EEM
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