In this video I take a look at the bear market in 2015 in stocks and how the EEM ETF gave early warning that a bear move was going to unfold. This could be very similar to what we are seeing today with the EEM being in a Stage 4 bear market since May 2018.
In the intermediate term to remain bullish I want to see 1600 hold on the Russell 2000 and 2800 hold on the S&P 500. If they don’t hold I will remain defensive and look for hammer candles to form on the weekly charts to signal a bottom, and will also look for a divergent low in the EEM since it started its bear market earlier than U.S. stocks.
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