Chart of the Day - Tuesday, September 9, 2025

🏆 Today's Chart of the Day was shared by Scott Brown (@scottscharts).
 

• Emerging Markets outperformed the S&P 500 for the third consecutive day, notching a one-month high on a relative basis ( $EEM/$SPY), and a three-year high on an absolute basis. 
   
• After a decade of persistent underperformance, $EEM is up twice as much as the S&P 500 this year (+24% vs. +12%). While the ratio has pulled back since April, it broke the five-month downtrend line today. 
   
• Scott notes that $EEM/$SPY is forming a potential Head & Shoulders Bottom, with the 2024 highs serving as the neckline. While the pattern is far from complete, the long-term trend could inflect higher soon, as the ratio has spent several months above a 1-year moving average. 
   

The Takeaway: Emerging Markets outperformed for the third consecutive day, and the relative trend is slowly shifting in its favor, with $EEM/$SPY building a potential Head & Shoulders Bottom over the past year.