Last week at this time, 16 of the 30 country ETFs in our trading range screen shown below were in overbought territory. After a week of declines, there are now just 5 countries still in overbought territory, while 12 are oversold. In our screen, the dot shows where the ETF is currently trading relative to its normal range (the black vertical “N” line represents each ETF’s 50-day moving average), while the tail end shows where it was trading one week ago.
As shown, Brazil (EWZ), Indonesia (IDX), Italy (EWI), Russia (RSX), Sweden (EWD), and the UK (EWU) are some of the countries that have gotten hit the hardest over the last week. Note that the US (SPY) has now moved out of overbought territory as well, but it remains above its 50-day moving average.
After the action we’ve seen over the last few months where pretty much everything was trading higher across the globe in lockstep, we’ve now got confirmation that yes…stocks can indeed still go down.