EEM (Emerging markets) have retraced 50% of the whole bear market drop ! This fibonacci retracement was quite significant in the past , as it proved to be an important resistance level in 2006 (A), a major support level in 2007 (B). Is it now an important resistance level for 2009 (C)? "Unless" EEM breaks above $37 in the short term, there is a high likelyhood that it will fall in the longer term towards the .236 fib level @ $27 ! The downside potential is remarkable (red area) ! The double short of EEM is EEV ! Note also that (A) and (C) look respectively like a left and right shoulder of a massive head and shoulder top.
EEM: Emerging Markets
