143 days ago • Posted by Charles-Henry Monchau

An Overbought World

The majority of global equity markets found a short-term bottom at some point in late October including the US. As shown below, of the 23 ETFs tracking each of these countries' equity markets, nearly all are up double digits since the end of October. A dozen have risen over 20% and Brazil (EWZ) has risen more than any other country, gaining over 40%. Given these moves, most of these ETFs are overbought as defined as trading at least one standard deviation above their 50-DMAs. Only Hong Kong (EWH) and China (MCHI) are not overbought by this measure while India (INDA) is currently the most overbought ETF trading 1.92 standard deviations from its 50-DMA - source. Bespoke.

Country Equity Market ETF % deviations from 50 day moving average