EMs are in a bull market say those who arbitrarily assign that label to a market that has risen 20% or more off its lows. This Inverted H&S pattern has been showing up not only in the EMs, but also in Asian markets and many individual stocks, often (but not exclusively) commodity or resource related.
NFTRH+ ID’d the bottoming pattern on July 13 just as EEM was nudging above its neckline. It has gotten through what I thought could be its most challenging resistance but as you can see, there is a lot more resistance (red shaded) all the way up to target (43). It’ll be a rough ride and it will be interesting to see who wins out, the overhead resistance or the IH&S pattern target.
Similarly, Asia (ex-Japan) has broken its neckline as well. There is resistance, but less of it on the way to target. I prefer to keep Japan in its own box. So this fund works well.
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