Investigating the weekly charts of popular emerging market sectors we can still see, and with the exception of Russia, markets starting to recover but the effort from my view is still incomplete.
The HI/LO Indicators, if shown, can be used to demonstrate why market change may soon appear whether the trend is rising or falling. Naturally daily, weekly and even monthly views reflect the possible time sequence these indicators may reflect. My experience in using these have made an impact 2/3rds of the time. That’s about as successful as most such indicators can make.
Starting with the most dominant Emerging Market Sector ETF (EEM) we see a market struggling to recover after a reasonably good HI indicator was early enough to lead the way out.
The most dominant China Sector ETF (FXI) is also in recovery after previous HI readings allowed for perhaps an early exit.
The dominant Russian ETF (RSX) shows the breakout rally higher coincided with the rally in energy markets.
While not an ETF the popular India Fund (IFN) is trying to bottom after currency issues caused an initial chaotic decline. The recent LO indicator allowed shorts to exit an oversold situation ,and perhaps stimulated bulls to enter fresh long positions.
Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
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Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com