This note is a guest contribution by Bespoke Investment Group.
The S&P 500 has made a nice move back above its 50-day moving average after playing ping pong with it over the past week or so. As shown in our trading range chart below, the index still has quite a bit of work to do if it wants to reclaim the losses seen since late April.
As we noted in our last post, many other countries have recently done better than the US in terms of equity market performance. The charts of 20 major equity indices below highlight this recent trend. While Australia, Canada, Japan, France, and Switzerland remain in downtrends, the rest of the charts show mostly overbought markets. India's Sensex looks the strongest of them all, as it has just moved to a new bull market high. Brazil, the UK, Singapore, South Africa, Sweden, and Spain are all well into overbought territory, while Germany, Hong Kong, Taiwan, Malaysia, Mexico, Russia, and South Korea are at the very top of their trading ranges. After breaking their downtrends on the recent run-up, many of the overbought countries are getting close to their April highs. And while still well below its bull market highs, China has even broken some key resistance points recently.
Copyright (c) Bespoke Investment Group
