Short-Term (days/weeks) : EEM sell signal

Short-Term (days/weeks) : EEM sell signal
EEM fell sharply last week, like developed equity indices, turning down at trend
resistance at the top of the channel as Daily OB/OS momentum turned down at
moderately overbought with a negative divergence. This looks like a short-term sell
signal.
At the close on Friday, EEM was turning up at minor short-term price support;
Daily OB/OS momentum was still moderately overbought, leaving room for further
downside now. The short-term outlook for the key US equity market is now
negative too: US analogs of the DJIA/NYSE ITI (peaks in the 70% range) suggest
weakness to late August, then a rally to new highs by mid-October; this looks like a
reasonable scenario for EEM too.
See Daily OB/OS Charts, attached, page 9 and analog chart, page 2.
Intermediate-Term (weeks/months): now negative (was positive)
GEM intermediate breadth and momentum indicators were mixed week-on-week at
the close on Thursday :
 Hang Seng, Singapore and Korea Intermediate Term Indicators were higher,
 India Intermediate Term Indicators and Money Flow of the Average India Stock
fell and
 Money Flow of the Average Hang Seng and Singapore Stock were unchanged.
Taiwan was closed on Thursday.
GEM equity indices were mostly lower week-on-week at the close on Thursday
including Hang Seng, India, ASX, Jakarta, Mexico, Philippines, Johannesburg,
Bovespa and Singapore. Shanghai and Turkey improved and MSCI Emerging
Markets (EEM), Korea and HSCEI were unchanged. India was sharply lower and
Turkey was sharply higher. See Weekly Charts, attached.
Mixed intermediate GEM breadth and momentum indicators and mostly lower
GEM equity indices is not a clear intermediate sell signal for EEM. However, the
intermediate outlook (weeks/months) for developed equity indices has turned
negative; this should weigh on EEM. US analogs of the DJIA and the NYSE ITI
analog point to likely modest price weakness short-term, followed by new highs by
mid-October for the key US equity market. See analog chart, page 2. This looks like
a good scenario for EEM too.
Key take-away: the intermediate outlook for GEM equities (weeks/months) is
now negative (was positive).