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I wanted to point out an exceptionally important trendline for the emerging markets, shown below via instrument EEM. Notice how this line represent resistance for many years (magenta tints) and then has changed to support (green tints). That’s precisely where we are right now.
A couple of nights ago, in a short post called It’s Quiet, I wrote, ” My spidey-sense is that it’s not going to be this painless. I am frankly stunned and how lackadaisical the market is being about this entire affair, yet as I look at the chart above, I simply don’t think it’s going to hang around at 14 forever with its thumbs in its pockets. Another shoe is bound to drop. “
Although “Spidey Sense” isn’t a widely-known technical indicator (not even in my cherished SlopeCharts), my intuition seems to have been correct. The shame of it is that we can’t behave like this is a normal market where we can do our analysis, get into our positions, set our stops, and move on with our lives. No, instead, we have to constantly be looking behind our backs from moronic amoral criminals like Kudlow and Mnuchin for their next effort to prop up this utter fabrication.
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