The image below is from our Trend Analyzer tool and shows a custom portfolio we created that tracks where the ETFs of the 20 largest global economies currently stand relative to their trading ranges. Keep in mind that the returns for each ETF are in US dollars and therefore account for any strength/weakness in the dollar. As shown on the right side of the snapshot, global stock markets are somewhat of a mixed bag as we enter the first full week of May. Currently, five countries are overbought (Italy, Canada, France, Singapore, and Spain), ten are neutral, and five are oversold (South Africa, Brazil, Mexico, Turkey, and Indonesia). All five overbought ETFs are from developed markets, while the five oversold ETFs are all from emerging markets, so that is one trend worth highlighting. Also worth pointing out is that of the five oversold ETFs, four have “Good” Bespoke Timing Scores, while Brazil even ranks as “Perfect”.
In terms of performance metrics, the majority of ETFs listed below are down YTD with an overall average decline of 1.4%. Leading the way to the downside are Turkey, Indonesia, South Africa, and India (again, all emerging economies), while Italy and Singapore are the only ETFs up over 5% YTD. With the S&P 500 entering the week down 0.3% YTD, it’s right in the middle of the pack versus the rest of the world and just below its 50-day moving average.
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