I wrote this post at the end of September discussing the idea that the Russian market was headed straight toward its early-2009 highs and 2010 lows (the same price level, making it a key reference). Despite the dire outlook for bulls at the time, the preemption was that the Russian market would find demand for stock at those levels, at least for now. Since that post, we saw a marginal, false breakdown in early-October, followed by a weekly hammer and strong upside confirmation the following week. Indeed, price has memory, and the buyers stepped up to the plate despite the continuous negative headlines out of Europe.
At the risk of cherry-picking the Russian market, also note the Shanghai Composite in China and Bombay SENSEX in India have similarly found support at multi-year reference points. While plenty of noted bears have been, and currently are espousing pessimism concerning the emerging market economies, these important price levels are holding for now and they seem consistent with an intermediate-term bottom. I expect to see much turbulence going forward, but if these benchmark indices can hold the lows then there should be some good individual opportunities going forward.