Global equity market indices have been obliterated by the ongoing deleveraging. The markets that have broken below their previous bear market bottoms are in danger of breaking lower and the ones that have managed to keep their heads above their bear market lows still have a chance to rebuild from the bottom.
The green zone in the chart represents 2 standard deviations below the 50-day moving average.
Brazil, China, Hong Kong, Germany, India, Italy, Japan, the UK, Mexico, Sweden, Russia, South Korea, and Spain remain above their lows, while Australia, Canada, France, Taiwan, Singapore, South Africa, and Switzerland have broken their lows. (Charts: Bespoke Investment Group)
