As shown, there are seven countries whose markets are now in extreme overbought territory, meaning they’re more than two standard deviations above their 50-day moving averages. The Singapore equity market ETF (EWS) is the most overbought country right now as it’s three standard deviations above its 50-DMA. Other countries trading at extreme levels include Taiwan (EWT), Japan Hedged (DXJ), Sweden (EWD), Belgium (EWK), Hong Kong (EWH), and China (MCHI).
Below is a chart of the Singapore ETF pulled from our Chart Scanner tool. While the ETF is at extreme overbought levels relative to its 50-day moving average, it’s still well below its highs from 2018. And while the ETF may be due for some short-term downside mean reversion, its breakout above resistance at $24 this week should set the stage for newfound support as it trends higher. This chart looks pretty bullish in our view.