The post-Brexit vote equity selloff didn’t last long as most world markets have rebounded strongly and are breaking out. From a technical standpoint, it appears (for now) as if investors are favoring stocks. To illustrate this point, all my posts this week will focus on some interesting and exciting opportunities. 

The first being the emerging markets (using EEM as my proxy). As you can see in its chart below it peaked in mid-2014 and declined some 35+% bottoming in January of this year. It has since taken back 50% of that loss and has formed and broke out from an (in blue) inverse head and shoulders bottoming reversal pattern. If this pattern plays out to completion its upside target is some 20% higher. With RSI momentum in the bullish zone and rising and price above a rising 200 day moving average, you can’t ask for a nicer opportunity setup.