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PowerShares DWA Emerging Markets Technical Leaders (PIE) just flashed the death cross (50-day moving average below 200-day) signal.
The investment objective of the PowerShares DWA Emerging Markets Technical Leaders (PIE) ETF is based on the Dorsey Wright Emerging Markets Technical Leaders Index (the Index). The Index includes approximately 100 companies that possess relative strength characteristics, and are domiciled in emerging market countries.
If the strongest emerging markets companies are showing signs of breaking down, will there be a flight out of emerging markets?
The red price bars showing underperformance vs. SPX.
Will the 200DMA turn into major resistance?
The death cross is a good filter to help narrow down the field. From there, traders should apply the Seven Steps to Better Stock Trading. For example, it is important to determine if there is a trend. One way to do it is to apply a swing indicator and look for a pattern of lower highs and lower lows. Better yet, just use my Total Indicator for eSignal. It’s free!
