Chart Of The Day: Emerging Market Stocks Remain Directionless

Published 06/09/2015, 01:57 AM

Today's chart of the day focuses on equities and in particular the technical setup of the MSCI Emerging Markets Index (priced in USD). Whether you are bullish or bearish on this asset, there is a major trade opportunity being set up right now.

The technical triangle has a series of lower highs since May 2011. On the other hand, since the intermediate bottom in October 2011, the index has also been posting a series of higher lows too.

Recent price action has once again moved below the 200 day moving average and the index has posted an eleven day losing streak (something not seen since 1990). Bulls have been accumulating since October 2011, while bears have been distributing since May 2011, but which one will win out in the end?

Chart Of The Day: Emerging Market stocks remain directionless for now

MSCI EM Index vs 200DMA 2007-2015

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