Emerging markets (EEM) seem to have reached an exhaustion point at the dashed red line. Slight damage was done to the supporting trendline, and I could see this breaking that line with some gusto within the next ten trading days.
Likewise, the worldwide markets (sans North America) (EFA), in spite of being near lifetime highs, has been grinding around at roughly that level for a couple of weeks. It, too, seems to have shot its wad.
A short position of mine, South Korea’s EWY, formed a price gap following a shooting star candlestick, and so long as we stay beneath that line, I’m going to remain short.
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