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It has been a rough week for global stocks as the iShares MSCI Emerging Markets ETF (EEM) is down 5.25% from last Friday’s close. EEM has first support in the $37.50-$39 area, but the key support to watch is in the $35-$36.50 area. A break below this level will suggest that EEM has completed a major top with downside projections in the $26-$28 area. The 50-day MA has just dropped below the 200-day MA, but the 200-day is still rising. To reverse this potentially negative signal, the market needs to reverse course soon.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
