Friday's price action is very
negative for the market as whole. QQQ confirmed another lower high at 89.68. It
has a good chance to extend the downtrend towards the 200 day MA. RUT was the
next, closing in on March 27's 1147 low, which, if broken, would confirm a
lower high too, extending the downtrend towards the 200 day MA next. SPY had a
key reversal day Friday. The next key level is March 27's 183.90 low near the
50 day MA. If broken, That would confirm a double top and then the 200 day MA
would be the next focus.
EPI, EWZ and IF were among the best EM
performers. FXI and RSX followed. They all have outperformed S&P. It would
be interesting to see if their outperformance continues as the US equities
continue to continue to correct. The current technical readings suggest that
the EMs may see a pullback near term as they are overbought. As far as the
pullback is shallow, then they should continue to outperform. They need to be
monitored closely.
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