So, Argentina defaulted on their debt yesterday. So what! They have defaulted 7 times before! Seven! Unless you own their debt this should not be a big deal -- Perhaps, even if you own it. Financial crisis and default is in their blood. Heck, the big crisis from the Peron-era led to a musical that has been around for 40 years now. Default is their middle name. But the Argentinians are not crying about it. They just missed winning the World Cup and their stock market is soaring.
The chart above shows the trend higher in the Global X FTSE Argentina 20 (NYSE:ARGT), since the pullback in February. The bearish Butterfly harmonic completed and it retraced, but is heading back higher again. The MACD is about to cross up, a bullish indication. And the RSI has turned higher. This has also created what is known as a Positive RSI Reversal, where a lower low in the RSI is accompanied by a higher low in the ETF Price. It gives a target higher to 26. And the two legs higher at the 138.2% Fibonacci ratio, suggest a possible 3 Drives pattern that targets 26.25 as well.
I know, a lot of technical jargon. But the bottom line is that the Argentina stock market is looking higher. So listen to what it is saying and don’t cry for it.