With so much focus on markets outside of the US right now, below we highlight our trading range charts for the S&P 500 and 20 other major country equity market indices. For each chart, the light blue shading represents the index's regular trading range, which is one standard deviation above and below the 50-day moving average. The red zone is considered overbought territory and is between one and two standard deviations above the 50-day moving average. The green zone is oversold territory and is between one and two standard deviations below the 50-day. Moves below the green zone or above the red zone are extreme readings and rarely occur.
While the S&P 500 has moved below its 50-day moving average, it still remains in neutral territory. Unfortunately the same can't be said for a lot of foreign markets. As it stands now, Australia, Brazil, China, France, the UK, Spain, and Switzerland are all trading below their green zones and are in extreme oversold territory. Hong Kong, Taiwan, and Mexico are just on the border of breaking below their green zones. The countries holding up the best right now along with the US are Canada, Germany, India, Malaysia, and Japan. In the early stages of the current global bull market, countries were rising in tandem, but recently we've been seeing significant divergence in performance.
click to enlarge