Chart of the Day - Tuesday, July 9, 2024

🏆 Today’s Chart of the Day was shared by David Wrath (@DJwrath).

• The Emerging Markets ETF ($EEM) closed at a two-year high today after clearing the May peak.

• $EEM initially broke out to new 52-week highs in early May, but it peaked two weeks later.

• After a minor pullback and a successful retest of its 50-DMA (blue), $EEM is resolving higher from a two-month base.

The takeaway: Emerging Markets ($EEM) have persistently underperformed US Stocks over the past decade. But they’ve finally joined the bull market, and the path of least resistance for $EEM is higher in the near term.