Emerging Markets: Weak Link in Bull's Armor

Brett Steenbarger submits:
I just want to amplify an excellent blog comment from reader Matthew C. Above we see a daily chart of the S&P 500 Index (SPY; top chart) vs. its 20-day volume-weighted moving average. Note that we've broken below that average today, but remain well above the June highs. That keeps the uptrend intact.

China's market (FXI; bottom chart), however, has been below its 20-day average for several days and today has moved back into its June range. Nor is China unique in this respect. We also see Brazil (EWZ); Russia (RSX); Hong Kong (EWH); and India (EPI) moving back into their June trading ranges.
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