lt’s not exactly news that global markets have been significantly weaker than the US this year. Almost every single international ETF is down year to date; a few of which are down by double digit percentages. Only two have managed to edge out slight gains YTD. The Global 100 (IOO) has seen gains of 4.1% and the MSCI All Country World Index (ACWI) is up 1.03%. Unlike other ETFs in the Regions category of our Trend Analyzer, these two have US exposure that has helped them stay afloat. In the past week though, not even this has been a saving grace; just about every ETF is down well over 1%.
Emerging market ETFs are especially feeling the pain as they have each dropped over 4%. The MSCI All Country Asia excluding Japan (AAXJ) has had the worst performance of all. It has fallen 6.06% in the past 5 days! Looking at the long tails in the Trading Range section of the Trend Analyzer, you can see the large movements below the 50-DMA for most of the ETFs included in this group. This has pushed many deep into oversold territory. All the negativity aside, the Latin America 40 (ILF) has been gaining ground recently with a huge jump up yesterday thanks to Brazilian first round election results. Currently, it is up 7.77% since this time last week. While good, it may be getting overextended. It is the only overbought member of this group sitting 9.42% above its 50-DMA and our Trend Analyzer has given it a bad timing rating based on its extreme overbought reading.