Below is an updated look at Bespoke’s country trading range screen using 30 of the largest country stock market ETFs traded on US exchanges. For each ETF, the dot on the right-hand side of the screen represents where the ETF’s price is currently trading within its normal range. The tail end to either the left or right of the dot represents where the ETF was trading one week ago. Also, the black, vertical “N” line represents each ETF’s 50-day moving average, and moves into the green or red zones are considered trading “oversold” or “overbought.”
As we enter the week, all but four countries are trading above their 50-day moving averages, and unfortunately, the US (SPY) is one of the four trading below it. Switzerland, the UK, and Vietnam are the other three countries below their 50-day moving averages.
While the US has lagged recently, a majority of countries in the screen are trading in “overbought” territory. This means they’re trading in either the light or dark shaded red zones in the screen. An “overbought” reading is triggered when the ETF trades at least one standard deviation above its 50-day moving average. When the ETF is in or above the dark red shading, it’s trading in “extreme overbought” territory, which is 2+ standard deviations above the 50-day.
Some of the countries trading in extreme overbought territory as we enter the trading week are China (ASHR), Colombia (GXG), South Africa (EZA), and Turkey (TUR).