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.Ā As shown in our trading range chart below, the index still has quite a bit of work to doĀ if it wants to reclaimĀ the losses seen since late April.
As we noted in our last post, many other countriesĀ have recently done better than the US in terms of equity market performance.Ā TheĀ charts of 20Ā major equity indices below highlight this recent trend.Ā While Australia, Canada, Japan, France, and Switzerland remain in downtrends, the rest ofĀ the charts show mostly overbought markets.Ā India's Sensex looks the strongest of them all, as itĀ has just moved to a new bullĀ market high.Ā 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.Ā After breaking their downtrends on the recent run-up,Ā many of theĀ overbought countries are getting close to their April highs.Ā And while still well below its bull market highs, China has even broken some key resistance points recently.
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