There are a few asset management firms calling emerging markets as the “trade of the decade” based on valuations. See Bloomberg article here: http://www.bloomberg.com/news/articles/2016-02-26/trade-of-decade From a TD perspective, there may be some truth to that. From the monthly chart of the iShares Emerging Markets ETF (EEM), a qualified TD Buy Setup @9 will likely record this month. Combined with the true low of the active TD Buy Setup @9 is trading above the 19.86 TDST Support level, further losses appear to be contained.
Other support for the EEM may come from some upcoming price exhaustion points on the monthly Light Sweet Crude (/CL) oil chart. The current month already shows a ‘perfected’ bar 8 of the TD Buy Setup. Another lower close and lower low will for the month of March will set up a TD Buy Setup @9 and TD Combo Buy @13. This increases the chances that crude will begin the bottoming process this year. The best value looks to be between 20-30, and anything under 20 can be considered oversold.
Foe the S&P 500 (SPX), there is nothing groundbreaking on the calendar maybe except for the manufacturing PMI from China and Friday’s jobs report.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Neutral if four-hour SPX closes below 1933.47 mid-session or closes below 1951.62.
Using the 1934.47 TD Resistance level as a bull/bear polarity level, all bearish price flips below 1934.47 are bearish, and bullish price flips are neutral. Above 1934.47, all bearish price flips are neutral and bullish price flips are bullish. Note with this strategy, higher than normal turnover may be experienced.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Neutral if daily SPX closes below 1921.27.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: NEUTRAL
Bearish if weekly SPX closes below 1850.61 on Friday, March 4, 2016.
S&P 500 (SPX) LONG TERM OUTLOOK: NEUTRAL
Bearish if monthly SPX closes below 1850.61, the weekly TDST Support level on Monday, February 29, 2016.