EEM Bull Signal

The emerging markets etf, EEM, displayed a psar bull signal this morning, a day after the pps flashed bull. The macd also moved above the zero line, and the sto rose into overbought territory.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
EEM $42.01

With an adx of 13, EEM by the book is a perfect candidate for whipsaws. The three-month daily chart, however, shows no evidence of whippiness. The shortest psar signal chain lasted seven days.


The price faced a near-term reversal hurdle at $42.25, about half a percent away, and has a major reversal top at $43.47, a bit more than 3% above the current price. That's major top marks the maximum potential that I see in this move.

You are here:

• Reversal
• $43.47, +3.5%
• $42.80, +1.9%
• $42.25, +0.6%
• Now $42.01
• Reversal
• $40.67, -3.2%
• $37.76, -10.1%

This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic   

About the glance:  The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: green for above 30-up, red for 20-down, yellow for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.