Emerging Markets Need To Hold Support

As I write this the market is firmly in the green, with the S&P ($SPY) up $1, and large-caps continuing to lead the charge. But the Emerging Markets ($EEM) have been lagging the global bounce since the rejection of the $41 level on the ETF.

I used the Tradespoon Seasonality chart today and found the stock right at 10-day support, $39.85. But unless $EEM can break $41 and establish new short-term highs, the downside will get tested. A break below $38 would shift the overall trend in the Emerging Market stocks to negative and we could see $36 pretty quickly.

We are still universally bullish on the overall global markets but we need to tread lightly.

Have a great trading day!

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