Emerging Markets & BRIC: Make or break time ... yet again

Since my last post on the subject on April 21st, both emerging markets and BRIC have both gone up for half the month and then down for the rest of the month.
EEM: now has a smaller right shoulder formed yet again on the same trendline.


EEB: Back to the trendline, yet again to decide its fate.
 


The only word of caution is that it looks like the S&P 500 might gain some strength and if it makes new highs both the EEM and EEB will make final moves upward and possibly even new highs (EEM 45.39, EEB 37.14) before they collapse below these trend lines.

Emerging Markets & BRIC: Make or break time

The Emerging Market and BRIC ETF's are both at crucial junctures.
EEM: Resting on a trendline after having completed what seems like a Ist and IInd wave down. If the trendline breaks we get a fully formed head and shoulders. The breakdown in 2008 also came from a similar formation.

EEB: This poster boy of the last bull run is sitting at the neckline of a head and shoulder pattern that has taken 4 years to form. In addition it looks like it is already forming a 3 of a larger IIIrd wave.

Considering the precarious position the S&P 500 is in, any sort of macro surprises would be capable of breaking down these markets in a big way!

BSE Sensex short term Elliott Wave

The last post on March 24th showed a head and shoulders pattern. The neckline was breached on 4th April and the test of the neckline seems complete as of today. This post will put that pattern into the context of a wave count. 

Although the market topped at 20203 on Jan 29th in terms of the wave count the market topped on March 11th. As from the chart the market has completed waves I & II and is in the process of forming a wave III down of which 1 & 2 of minor degree also seem complete. A breach of 18175 will confirm that a 3rd wave of III down has indeed started.
In conjunction with the head and shoulders post what we should see here is a move down to 17450-17000.
The count will be invalidated if another up move breaches the 19025 level.