The emerging market is off about 9% over the past three months.
“The emerging markets led on the way up and they lead on the way down. When they bottom it is likely to be ahead of the developed world, as it was in October 2008. As yet they have not established a concrete floor (the recent early October relative low was not a firm place to hang one’s hat),” Coe wrote in a newsletter Friday.
“Recent trading has seen the emerging market’s relative chart correct from oversold but with the 50-day exponential moving average now tested, the trend is primed to reassert its slide. Such action would have bearish implications for global equities,” the analyst said.
iShares MSCI Emerging Markets
