EM equities at key level

The MSCI Emerging Markets Index is mounting a significant challenge on key resistance at 852/873, the neckline of an unconfirmed inverse head-and-shoulders pattern, according to David Sneddon and his team at Credit Suisse.

Sneddon says a break above this level would see a base established and turn the trend bullish. The initial target would be 906 and thereafter 945, the 61.8% retracement of the 2014 to 2016 decline.

See Chart.