In 2007, the Emerging Markets ETF (EEM) was at all-time highs… a little over a year later and it fell 50 percent.

Fast forward to today, and the EEM Emerging Markets ETF is trading near all-time highs and looking for a major breakout.

Looking at the “monthly” chart below, you can see the 2007 highs marked by (1). It’s been a wide sideways slog for EEM, but the ETF is trading up against those highs again and looking to break free and into “free air”.

The monthly chart offers a great deal of perspective. While price has made new all-time highs, the monthly closing price has remained near the 2007 highs (see a couple of wicks that poked above). Bulls really want to see a strong candle with a closing price ABOVE the 2007 highs.

Should EEM break free of the 2007 resistance at (2), it would likely attract a good deal of buyers.

(Click on image to enlarge)