Monday, March 12, 2018

Emerging Markets (EEM) And China (FXI) Set To Breakout?

I'm not sure where all this optimism and euphoria is coming from but China Large Caps ETF FXI and Emerging Markets ETF EEM are set to breakout despite a warning that they are at risk of a banking crisis (Bloomberg article here). Everything looks to be in place with some long-term markers imminently about to turn over while the near term EMA's already have. FXI is currently caught in a condensing triangle so it could go either way but my feeling is it's about to go upside.
EEM looks very similar here with a convincing breakout. Today will be our confirmation of the breakout if we have a close above the resistance line.