MSCI EMERGING MARKETS INDEX

Strong trends usually emerge from low volatility periods. Low volatility reading on long-term charts is more significant. MSCI Emerging Markets index is getting closer to a strong directional movement after the band width reached multi-decade low level. Index is now in a tight range between 910 and 1,100 levels. Breakout in either direction will result in a strong move. Last two year’s choppy sideways trading is a sign of weakness. Though, I would wait for a decisive close above or below the mentioned levels.