Below we provide our trading range charts for 20 major country indices around the world. For each chart, the blue shading represents the index's "normal trading range," which is between one standard deviation above and below the 50-day moving average (white line). The red shading represents between one and two standard deviations above the index's 50-day moving average, and vice versa for the green shading. In general, the red shading is an initial overbought level, and a move above the red zone is an extreme overbought reading that suggests a short-term pullback is in the cards.
Only Sweden and Malaysia are currently trading above the red zone into extreme overbought territory. Canada, Brazil, the UK, and Switzerland are trading within their red zones and are trending nicely higher, while the rest of the country indices are within their normal trading ranges. None of the countries are currently oversold, but some of them don't have attractive chart patterns. China, Hong Kong, Taiwan, South Korea, and Spain are all struggling to stay above their 50-days at the moment and have a lot of work to do to return to long-term uptrends.
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