iShares FTSE China Large-Cap ETF (FXI): The ability to hold onto the extension of the top of the 2010 symmetrical triangle pattern has led to some kind of technical oversold rally. However, the rally looks to have stalled as a large 5/24/13 negative outside week pattern has developed, which is warning of distribution forces at work. Key support remains near 34.50 or the Apr 2013 low as well as the converged apex of the symmetrical triangle pattern. From a relative strength perspective, FXI continues to behave poorly with no technical signs of reversing at this point.
iShares MSCI Emerging Market ETF (EEM): It appears that EEM is headed for a test of key support in the low-40s which corresponds to the 2008 uptrend line. The inability to maintain this support warns of an end to the 2008 uptrend and opens the door for a test of the 38.2% Fibonacci retracement of the 2008-2011 rally. On the other hand, large ascending triangle pattern dating back to 2011 is still developing. A breakout above the top of the pattern near 45 could set into motion the next sustainable rally. The timing of this pattern looks like it could resolve itself in the weeks/months to come.
SPDR S&P 500 ETF (SPY): SPY is approaching a key level of resistance in the low-170s which corresponds to the top of the 2009/2011 uptrend channels and the extension of a 2009 uptrend line. A pullback here should not be surprising, but a breakout could result in an accelerated the buying. Initial support is near 160 or the April 2013 high, the May 2013 breakout level, and the 50-day moving average. A violation of this support opens the door for a move towards the September 2012 high and the bottom of the 2011 uptrend channel near 150.
J. Beck Investments is an independent provider of technical research for ETFs.