The charts show how the roll overs in the EEM ETF forecast a roll over in the US stock market. In late 2013, it took about three months for US stocks to respond lower after the EEM pull back began. In 2014, about one month after the emerging market top. In 2015, it took about three months for the US to roll over after the EEM had already done so. In late 2015, EM and US stocks rolled over at the same time. Ditto the April top.
Emerging markets trend lower but US stocks are celebrating upside joy. Will the same pattern repeat and take US stocks lower? If EEM recovers higher, the tail may start wagging the dog. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.