Conclusion, Investment Implications, Strategy

The iShares MSCI Emerging Markets ETF (EEM) is in the early stages of a Feb 7th major bullish trend change amid monthly asset expansion and quarterly relative outperformance versus the S&P 500 (SPY).  Together, these factors establish favorable conditions for more outright strength and relative outperformance by Emerging Markets.  The bullish implications of this idea will remain valid above EEM 43.35.

New Major Bullish Trend Change In EEM Amid Asset Expansion & Relative Outperformance vs. SPX

The upper panel of Chart 1 below shows that the iShares MSCI Emerging Markets ETF (EEM) is in the midst of an emerging major uptrend as indicated by its Feb 7th rise above its 200-day moving average, a widely-watched major trend proxy.  The middle panel shows that the total net assets invested in EEM (AUM) expanded above their 21-day MA on Feb 4th to indicate a trend of monthly expansion.  Expanding assets indicate bullish conviction in higher prices.  The lower panel shows that EEM has been outperforming the S&P 500 on a 63-day quarterly basis since Feb 10th to indicate a monthly trend of quarterly relative outperformance.

As long as these three conditions remain intact, EEM is likely to continue rising in the weeks ahead.

Chart 1

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.

Click the table to make it larger