Mature Mexican Rally

The strength in the Mexican market over the past few years has seemingly been an affront to the headlines and steady news flow south of the border of complete chaos, with cartels and poverty running rampant. Nonetheless, we focused on the price action in this post, and this one of the benchmark Mexican Bolsa IPC Index and saw the continued bullish action.

EWW is the Mexico ETF traded in America, and some of the hotter Mexican ADR’s traded here have been KOF and FMX.

Currently, those ADR’s are very extended. Furthermore, updating the Mexican benchmark’s monthly chart below, we have a mature rally on our hands, with a potential warning sign after a fake-out, or throw over, above the rising wedge pattern going back several years.

I’d start to look at fading any late-to-the-party Mexico bulls here.

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