EEM Watch

The emerging markets exchange-traded fund (EEM) is showing bull phase on Person's Proprieatary Signal, bringing the major indicators back to unanimity for the first time in four days.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
EEM $38.30

The switch to bull phase accompanies a three-day rise. The first two days of price increase has been marked by falling volume.

The parabolic sar moved to bull phase on June 3, two days after the macd. However, the pps turned bearish the next day, setting up this week's signals divergence.

EEM has been showing lower volume peaks (diminishing maximums) since the three-month high of 225.1 million shares on May 6. In my book, it would take a break above that level to lend significant credibility to an upward move.

Reversal Levels

• $40.93, +6.9%
• $39.01, +1.9%
• $38.30 <== You are here.
• $36.59, -4.5%

Longer term, EEM peaked at $55.83 in October 2007, reached a swing low of $18.22 in November 2008, recovered to $46.66 in April of this year, and since then has declined. So any pretence of an uptrend at this point runs counter to the larger trend.

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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
• sto - Fast Stochastic

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

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple 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.