Below we have run a number of foreign ETFs through our trading range screen. Most ETFs represent the equity markets of individual countries, but various emerging market ETFs are included as well. Global equities have done exceptionally well in the month of July, and all but 3 of the 30 ETFs highlighted below are currently trading in overbought territory. The only three not currently overbought are Canada (NYSEARCA:EWC), Japan (NYSEARCA:EWJ), and Switzerland (NYSEARCA:EWL). Belgium (NYSEARCA:EWK), Austria (NYSEARCA:EWO), the UK (NYSEARCA:EWU), and South Africa (NYSEARCA:EZA) are the most overbought based on their historical trading patterns. Italy (NYSEARCA:EWI), Spain (NYSEARCA:EWP), Emerging Market Europe (NYSEARCA:GUR), Emerging Market Middle East/Africa (NYSEARCA:GAF), and Russia (NYSEARCA:RSX) aren't far behind. While stocks can become overbought and then stay overbought for some time, we feel that it's important to at least tighten up stops at these levels.
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