Hong Kong's Hang Seng printed a beautiful outside day this morning, plummeting -1.6% in the opening moments of the morning session, only to reverse in the afternoon for a +0.57% gain. I noticed other 'near misses' yesterday (EWZ [Brazil], for instance).
Outside reversals do not
guarantee a change in direction, but they certainly heighten the odds. Reopening
positions in Emerging Markets this morning. Unlike the US indexes, BRICs have
effectively experienced significant corrections in the past month (EEM -10%, FXI
[China] -11%, RSX [Russia] -12%, and EWZ [Brazil] -22%).