In addition to the precious metals–namely the miners–the emerging markets are weakening today within the context of strong downtrends.
Much like the metals and miners, the EEM ETF for the BRIC countries has already bounced up to its upper daily chart Bollinger Band. Since then, though, the BRICs have weakened and are now in danger of rolling over for another leg down.
But even with the BRICs have largely bottomed here, it is worth remembering that the process of shifting from bear to bull with a prior steep downtrend can be a tedious one, with random, volatile gaps either way for an indefinite period of time.
If you are looking to be aggressive, EDZ is a triple-short ETF for the EEM.
All is not lost yet, but bulls had better support this $38 area, as you can see on the daily chart below.l
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