While most developed stock market indexes have been heading higher in 2021, the Emerging Markets ETF (iShares MSCI Emerging Markets ETF (NYSE:EEM)) has been trading sideways to lower.
The year started off with a bang for EEM as the ETF made new highs into February before stumbling for the next seven months.
Looking at the “weekly” chart from Marketsmith.com of Emerging Markets ETF (EEM), the downward price action has formed what appears to be a bearish descending triangle over the past few months at (1).
With key technical support breaking down, it appears EEM could make a “measured move” decline of 12% to (2) on the chart.
Are Emerging Markets about to submerge? Stay tuned.