In our April 3 ChOTD, we pointed out that Latin American stocks, as represented by the S&P Latin America Index, were running into possible resistance after bouncing strongly off of a key long-term support area. We surmised that those hopeful buyers who missed the initial rally may get a pause at a trio of key Fibonacci retracement levels that will afford them an attractive entry point. After a failed breakout above that resistance, the Index has indeed consolidated over the past month. It may now be resuming its rally.

The S&P Latin America Index has now broken out of a pennant consolidation pattern it formed right at the key Fibonacci lines we identified. If the breakout is successful (today showed good follow-through), the next up-leg is at hand.