Emerging Markets Triangle
Today’s chart of the day focuses on the global stock market conditions and in particular the under-performance of the emerging market equities. I recently written an in-depth article about emerging market equities and why I hold this asset a major long position in my portfolio. The post can be read by clicking here.
Chart Of The Day: Emerging markets have been trend-less since late ’09
Source: Short Side of Long
Since the article was published emerging market equities have managed to rally back above the 200 day moving average, as can be seen in the chart above. In my opinion, this is a very positive development. Having said that, the price needs to clear the technical triangle setup to confirm that a major rally could be underway. After six years of disappointing performance, could emerging markets stage a recovery similar to what the eurozone stocks are going through right now? Only time will tell!