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New 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.
