Emerging Markets Break First Support
01/22/2010 9:21 am EST
Thursday was a rough day for most of the world markets, and we saw the Chinese (FXI) and Brazilian (EWZ) ETFs hit with heavy selling. Short-term momentum is negative for both, so further selling is likely. FXI has dropped below the December lows at $41, closing below its 200-day MA. Next good chart and retracement support is at $37.50. EWZ also violated support at $71. There is next support in the $65-$67 area, but a test of the 200-day MA and the 38.2% support in the $67.50 area looks possible.