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What To Make Of Emerging Markets?

|Includes: iShares MSCI Emerging Markets ETF (EEM), EWH, NFLX

The Emerging Markets ETF (NYSEARCA:EEM) is a very interesting chart. Is it a strong buy or a strong sell? It seems both cases can be made.

The weekly chart posted a huge bullish wick last week. That is often a great reversal pattern that indicates the bottom of a selloff.

But the daily chart paints a different picture. It experienced a massive breakdown and has now climbed back to the former support. This would typically be a good spot to short.

So which is it? Strong buy or strong sell? I don't know, but it's a pretty interesting situation.

Another very interesting, somewhat perplexing international chart comes from Hong Kong (NYSEARCA:EWH). It looked like a serious breakout earlier this year, then hit resistance from a decade ago. It pulled back to support and has created a very bullish wick on the weekly chart. I suspect this is a bullish setup. At the very least, it looks interesting.

As an unrelated aside, Netflix (NASDAQ:NFLX) rallied 15% after earnings. Breakout? Maybe not so fast. It looks to be coming up on a 20 year old line of resistance.

Happy trading.

Disclosure: I am/we are short EEM.