Short-Term (days/weeks) : no sell signal, use possible weakness to $41.50 (-1%) as a buying opportunity for EEM

Short-Term (days/weeks) : no sell signal, use possible weakness to
$41.50 (-1%) as a buying opportunity for EEM
EEM was sharply higher last week, making new short-term highs as Daily OB/OS
momentum turned up at moderately overbought.
At the close on Friday, EEM was testing short-term trend resistance from the April
price highs; Daily OB/OS momentum was moderately overbought.
No short-term sell signal for EEM (days/weeks). US analogs suggest possible
choppiness over the next two weeks which may feed through to GEM. Use possible
modest weakness to $41.50 (1% below Friday’s close) as a buying opportunity.
See Daily OB/OS Charts, attached, page 9.
Intermediate-Term (weeks/months): still positive
GEM intermediate breadth and momentum indicators were mixed week-on-week at
the close on Thursday :
 Hang Seng Intermediate Term Indicator and Money Flow of the Average Hang
Seng Stock were higher,
 India and Korea Intermediate Term Indicators fell and
 Taiwan and Singapore Intermediate Term Indicators and Money Flow of the
Average India, Singapore and Taiwan Stock were unchanged.
GEM equity indices were also mixed week-on-week at the close on Thursday:
 MSCI Emerging Markets (EEM), Mexico, Turkey, Philippines, Hang Seng,
HSCEI, Shanghai, ASX, Singapore, Jakarta, Bovespa and Korea improved,
 India and Johannesburg fell and
 Taiwan was unchanged.
See Weekly Charts, attached.
Mixed intermediate GEM breadth and momentum indicators and GEM equity
indices suggests a still-positive intermediate trend (weeks/months) for GEM equity
indices.
Also, the DJIA /NYSE ITI analog model of troughs in the 30% range suggests a
positive intermediate trend for the key US equity market: this should be supportive
for GEM equity indices. See analog chart, page 2.
Key take-away: the inter mediate outlook for GEM equities (weeks/months) is
still positive.