Is Latin America Leading the Emerging Markets Lower?

While doing some comparisons of market indices I stumbled across an interesting comparison. The Latin American ETF index ($ILF) seems to be leading the Emerging Market Index. Over the past year, we have taken a sizeable position in the Emerging Market Economies ($VWO). We feel that higher commodity prices should lead these Emerging Market economies higher. Since their highs at the beginning of 2018, Emerging Markets have been on a slow slide down. Not too problematic considering their meteoric rise in 2017. It needed to breathe. What's concerning is the high correlation between the Latin American Index and EM index. As you can see (Red Line) Latin America has been getting smashed. It will be interesting to see if EM follows. Keep an eye on it!