Chart of the Day - Friday, January 2, 2026

By Patrick Dunuwila

January 2, 2026
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🏆 Today's Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi).
 

  • Emerging Markets ($EEM) are off to a strong start in 2026, gaining +2.7% today while the S&P 500 rose, +0.18%. Mike notes that today’s relative performance was the best since April 2025.
     

  • Following years of underperformance, Emerging Markets finally outperformed the S&P 500 last year, by a decent margin of roughly +17%.
     
  • The ratio ($EEM/$SPY) is breaking a multi-year resistance level, opening the door for sustained leadership in 2026. $EEM has also set the stage for a massive breakout on an absolute basis as it attempts to complete a 19-year base. 
     

The Takeaway: With a relative breakout versus the S&P and a massive long-term base nearing resolution, Emerging Markets appear poised for continued outperformance in 2026.

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Patrick Dunuwila

Editor, The Chart Report

Patrick Dunuwila is the Co-Founder and Editor of The Chart Report, a popular technical analysis newsletter read by thousands of investors worldwide every day. Patrick is a Chartered Market Technician (CMT) with over a decade of market experience. Prior to launching The Chart Report, he worked as a proprietary trader at Benchmarq Technologies in New York City. He's originally from Syracuse, NY, and currently resides in San Diego, CA.

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