Head and Shoulders on $EEM

The EEM daily chart is showing a massive Head and Shoulders formation, with the Neckline set at $38. This could be a sign that the price will soon break to the downside, as Head and Shoulders are usually considered bearish reversal patterns. The market will now be watching for a break below $38 in order to confirm the bearish reversal. If the price does break below $38, traders may want to consider shorting the EEM as the price could continue to decline.