The first chart below is a Weekly...on it are an uptrending regression channel, Fibonacci fan lines, and a variety of price support levels. Price ended on Friday at the -1 deviation level of the channel and one of the support levels. A further weakening of this sector (in line with a weakening in global economies) could send it down to a major confluence level of 26.50ish.
Each candle on the next chart depicts one yearly quarter. The 3rd quarter for 2011 was decidedly bearish on higher volume than the 2rd bearish quarter (and all prior quarters until the 2nd quarter in 2010). Price has ended back at the levels seen in the 3rd quarter of 2008. Any quarterly advances have been on lower volumes than on the declines.
Each candle on the last chart depicts one year. The current candle is a bearish engulfing and has nearly reached last year's lows. A close of 26.50 for this year would be slightly above the 23.96 close for 2008...the bottom tails of the 2008 and 2009 candles may, however, be retested at some point before the EEM finds sufficient support from which to convincingly rebound. We'll see how this candle closes by the end of the year, and what it signals for next year.
