US equities posted nice gains following the Fed’s rate hike this afternoon. The same was true for country ETFs outside of the US. Both the Russian stock market (RSX) and the Mexican stock market (EWW) posted gains of 3%+ today.
Below is an updated look at our trading range screen for the 30 largest country ETFs traded on US exchanges. For each country, 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 country’s 50-day moving average, and moves into the red or green zones are considered “overbought” or “oversold.”
A week ago, only 7 of 30 country ETFs in our screen were trading in overbought territory, but after today’s move, that number is back up to 23 of 30. Pretty much all regions of the world are extended well above their 50-day moving averages again. South Africa (EZA), Spain (EWP), France (EWQ), and South Korea (EWY) are four of the most extended.
Just 5 country ETFs are currently below their 50-days — Canada (EWC), Colombia (GXG), Russia (RSX), Thailand (THD), and Vietnam (VNM) — and just 2 of those 5 are oversold (Colombia and Russia). And even though Russia is still oversold, it has seen a huge jump higher within its range over the last week, just like pretty much every other country.