EMERGING MARKETS – EQUITIES

Are emerging markets really weak? There are outflows from the emerging markets but how are their equity market performances so far? Are their long-term uptrends challenged? Has there been significant technical damage during the latest so-called weakness?

If a market is holding above its long-term moving average (200-day moving average), I classify this a uptrend. Likewise, if a market is recording higher highs and higher lows, this is also considered an uptrend. Below I analyzed 21 emerging market equity indices. Most of the markets are still healthy and they are either in a uptrend or moving sideways (no major downtrend as of now). For some emerging market weakness is not a new phenomena. They have been weak over the past 3 years. Yes, some markets have experienced weakness, but to conclude for further weakness we should see major breakdowns. At this stage I don’t see major breakdowns on the charts. On the contrary, I’m analyzing more sideways consolidations and possibility of rebounds from strong support areas.

Markets that are weakening: CHILE, THAILAND

Markets that have been weak but now close to strong support: BRAZIL, COLOMBIA, PERU, CHINA, MOROCCO, TURKEY

Markets that are moving sideways: MEXICO, INDONESIA, KOREA, PHILIPPINES, TAIWAN, HUNGARY, POLAND, CZECH REPUBLIC, RUSSIA

Markets that are in an uptrend:  INDIA, MALAYSIA, EGYPT, SOUTH AFRICA.