Short-Term (days/weeks) : use weakness to $39.50 as a buying opportunity for EEM

Short-Term (days/weeks) : use weakness to $39.50 as a buying
opportunity for EEM
EEM peaked at a new short-term price high six days ago and fell again last week ;
Daily OB/OS momentum turned down at moderately overbought with a negative
divergence.
At the close on Friday, EEM was still above next price support; Daily OB/OS
momentum was still moderately overbought.
There is still an open gap in the daily bar chart around $39.80 (4% below Friday’s
close, near the 14-day moving average); this is an area of attraction and can be used
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 again week-onweek
at the close on Thursday :
 Hang Seng, Singapore and India Intermediate Term Indicators and Money Flow
of the Average Singapore Stock were higher,
 Money Flow of the Average Hang Seng, Taiwan and India Stock were unchanged
and
 Taiwan and Korea Intermediate Term Indicators fell.
GEM equity indices were also mixed week-on-week at the close on Thursday:
 India, Korea, Singapore, ASX, Philippines, Jakarta, Turkey, Philippines and
Taiwan improved and
 MSCI Emerging Markets (EEM), Johannesburg, Hang Seng, Mexico, Shanghai,
Bovespa, HSCEI and India fell.
See Weekly Charts, attached.
Mixed GEM intermediate indicators accompanied by mixed GEM intermediate
indicators suggests a still-positive intermediate trend (weeks/months) for GEM
equity indices.
Also, the DJIA /NY SE 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.