Strength in the U.S. Dollar combined with a strong bias toward U.S. stocks has the rest of the world feeling left out.
In today’s 2-pack of charts, we look at the iShares MSCI Emerging Markets ETF(NYSEARCA: EEM) and iShares MSCI EAFE ETF(NYSEARCA: EFA) to get a glimpse at what’s happening outside the U.S. And perhaps what’s to come.
Both ETFs have been much weaker than the S&P 500 (NYSEARCA: SPY). For that to change, these ETFs need to break out of the current downtrend. EEM and EFA are testing important falling resistance at point (1).
Stay tuned to this pattern – it should tell investors if/when there is a trend change.
Emerging Markets ETF (EEM) and EAFE ETF (EFA) Charts
The iShares MSCI EAFE Index Fund ETF (EFA) was unchanged in premarket trading Thursday. Year-to-date, EFA has declined -2.30%, versus a 9.06% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.