If EWW cannot pickup the pace against ILF this year, 2014 will mark just the second time since 2008 the Mexico ETF has lagged ILF, which allocates a combined 80.5% of its weight to Brazil and Mexico.
On Wednesday, EWW closed below $60 for the first time since June 2013. If sellers keep pounding the ETF, the fund risks its first close below $56 since June 2012. As Parets notes, “the bears are in control, very much so.”
Chart Courtesy: Eagle Bay Capital
Tom Lydon’s clients own shares of EEM and ILF.