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EEM Relative Strength to Global Equities Now at Critical Support

|Includes: iShares MSCI Emerging Markets ETF (EEM)

With its decline this morning, EEM's relative strength to global equities is now at a critical support level, see 2-year daily chart below.  See my Jan 21 Instablog (Jan 23 article) on "Emerging Markets Leading Global Markets Down."

Using ACWI, MSCI All Country World Index etf as the proxy for global equities, EEM's relative strength is now clearly below its 100-day EMA (exponential moving average) for only the second time since Feb 2009. 

EEM's relative strength "should" snap back soon from that "oversold" position, see stochastics indicator at bottom.  IF it doesn't, then the tone of global equities market has definitely negatively changed.

LEFT CLICK ON CHART TO ENLARGE.