The Emerging-Market Selloff Is Not Over Yet
InTheMoneyStocks.com | Dec 20, 2018 01:46PM ET
Lately, many talking heads in the financial press have been calling a bottom in the emerging markets. The iShares MSCI Emerging Markets ETF (NYSE:EEM) topped out on January 26, 2018 at $52.08 a share. At that time, all of the major stock indexes also topped out and staged a minor correction before moving higher into September. The EEM never recovered and simply continued to decline into October 29. This low was when the Shanghai (China) market found a near-term bottom. So we can easily see how tightly related the Chinese market is to the EEM.h3 Crucial Levels/h3
Currently, EEM is trading at $38.98 a share, which is still above the October low pivot. A weekly chart close below the October 29 low will signal another leg down for the EEM. The next major support level for this highly popular ETF will be around the $34.50 area. So it is critical for it to hold up at this time. Either way, this is now a trader's market, so be patient and wait for these important technical levels to come into play.
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