US Stock Market vs Emerging Markets Update

US Stock Market vs Emerging Markets Update.   The normal question comes up every week, is it better to invest in the US Stock market or the Emerging markets.     Emerging markets have made a good percentage gain in the last couple of weeks due to Brazil, India, etc.   However, is this long term or short term?    We use a customized Ichimoku relative strength chart for the comparison.

Below is a customized weekly Ichimoku relative strength chart of #SPY vs #EEM provided by Tradestation.     If the chart goes down than Emerging markets is better than the SPY and vice versa.

2016-04-22_eemspy

The chart is bullish where the US Stock markets has been leading the emerging markets.     A major support has been holding it up.     If this support gets broken then the Emerging markets can have a 9.12% gain over the US Stock markets.   If this support holds then the US Stock markets will have a 3.28% gain versus Emerging markets to the next resistance.

Until the support is broken, the probabilities are bullish but with caution because the lower time frames are starting to turn bearish with the last 2 months consolidating.

 

 

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

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About the Author Manesh Patel