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Emerging Markets Technical Setup

Emerging markets have notably underperformed since the start of the year.  In the six-month chart of the iShares MSCI Emering Markets ETF (EEM) shown below, the peak price came on the very first trading day of 2013.  Since that day, EEM is down 2.4%, while the S&P 500 is up 4%.  

The technicals are starting to look interesting for EEM, however.  Even though the ETF has pulled back, it hasn't broken its uptrend, and over the last few days it has been bouncing just above its 50-day moving average.  The fact that support at the 50-day has held is a good sign.  Investors should take note.