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Mid-session technical market analysis by Mike Paulenoff of our MPTrader service.

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Thu October 30th 2008
New Recovery Highs for Emerging Markets ETF
by Mike Paulenoff, www.MPTrader.comNew Recovery Highs for Emerging Markets ETF
By Mike Paulenoff, www.MPTrader.com

The Fed's decision to "selectively" lend $30 billion (each) to Mexico, Brazil, S. Korea and Singapore to try to ensure financial stability in the emerging markets triggered a late-session pop in the iShares Emerging Markets Fund ETF (AMEX: EEM) -- notwithstanding the plunge in ALL equity indices during the final 10 minutes of trading yesterday -- which extended into this morning. Let's notice that today's up-gap thrust the EEM to new recovery highs off of the October 27 low at 18.90. Let's also notice that my underlying hourly momentum gauge (RSI) has climbed to a new high for the move (but not yet overbought), which confirms the EEM strength and projects prices towards a test of the Sept-Oct downtrend line, now at 25.90.

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