For the third time i am compelled to post Emerging Market charts with the same title and a quick look at a 5 year chart will justify the post.
The weekly provides reference to a massive head and shoulders pattern that spans 4+ yrs.
This time frame of the next 2 week is crucial as you can see from the Elliott wave count on the daily, the line in the sand is 40.32 which is the end of the 1st green wave, since the 4th green wave cannot overlap 40.32 on the current move up. An overlap will will make way for a move to 45.20+ temporarily. The longer term bearish picture stays open till 51 is taken out.
On a bearish note if 40.32 is not crossed in the next few days and the market makes new lows at 36.40-, after a brief retracement (that stays below 43.91), the EMs are going to be ripe for a mauling.
My preference of the bearish scenario comes from the BRIC chart that displays similar characteristics to the EM chart but is decisively weaker, with the line in the sand at 34.49.
The weekly provides reference to a massive head and shoulders pattern that spans 4+ yrs.
This time frame of the next 2 week is crucial as you can see from the Elliott wave count on the daily, the line in the sand is 40.32 which is the end of the 1st green wave, since the 4th green wave cannot overlap 40.32 on the current move up. An overlap will will make way for a move to 45.20+ temporarily. The longer term bearish picture stays open till 51 is taken out.
On a bearish note if 40.32 is not crossed in the next few days and the market makes new lows at 36.40-, after a brief retracement (that stays below 43.91), the EMs are going to be ripe for a mauling.
My preference of the bearish scenario comes from the BRIC chart that displays similar characteristics to the EM chart but is decisively weaker, with the line in the sand at 34.49.
