Important to EPI’s near- to medium-term fortunes is the relative strength against EEM the India ETF is displaying. The comparison is important for money managers that benchmark to and attempt to beat broader indices such as the MSCI Emerging Markets Index.
“In the case of the EPI (India) vs. the EEM (global EM) ratio we can easily notice that India has been in a relative bullish mode since September 2013. Moreover, the EPI broke the long term resistance level at the end of 2013 and keeps testing new highs since,” according to Investment Strategy Wire.
EPI Relative Strength vs. EEM
Chart Courtesy: Investment Strategy Wire