Just last Wednesday we noted that stock markets around the world were trending lower and in many cases moving into oversold territory. Just six days later, it appears to be smooth sailing again as most countries have bounced back in a big way.
Below is our Country ETF Trading Range screen, which highlights where 30 of the largest country ETFs are trading relative to their historical range. For each country ETF, the dot represents where it’s currently trading, while the tail end represents where it was trading one week ago. The black, vertical “N” line represents each ETF’s 50-day moving average, and moves into the red or green zones are considered overbought or oversold.
As shown, nearly all countries have moved higher within their trading ranges over the past week (dot is to the right of the tail). At this point, 20 out of 30 countries are back above their 50-day moving averages, and 15 of 30 are back in “overbought” territory. China (ASHR), Hong Kong (EWH), and South Africa (EZA) are the most overbought ETFs in the screen. On the flip side, Chile (ECH), Italy (EWI), Spain (EWP), Sweden (EWD), and Turkey (TUR) are the five ETFs still trading at oversold levels.
On a YTD basis, all 30 country ETFs are in positive territory, with South Korea (EWY) up the most at +44.96%, and Russia (RSX) up the least at just +4.50%. The average country ETF is up just over 22% year-to-date.