Global Market Performance: Most Countries At Top of Trading Ranges

Hickey and Walters (Bespoke) submit: Part of Bespoke's presentation method is to display complex data and multiple variables in a way that allows investors to easily interpret the information. Below we highlight historical price and p/e ratio charts of ten major countries.

As a guide, the dark blue line is the price, the green line is the p/e ratio, and the green shading represents the trading "area" or range of the country's index. The area of the index's price is two standard deviations above and below its 50-day moving average. The price is neutral when trading within this area, but when it moves above or below the area it becomes overbought or oversold.

Most countries are currently trading above or at the top of their trading areas. Japan and India are the only countries that have yet to take out their highs from earlier this year. It is also worth noting that the p/e ratios of the US, UK and Japan have yet to expand over the last year.

click to enlarge

Comments

[Michael Bom...:]

Speaking of bollinger bands, the respective MSCI Index ETFs for Brazil (as well as Malaysia, Singapore, and Mexico) have all reversed trend and are now below their 50-session lower bands.

Do you think this is just nervous behavior on illiquid and sensitive ETFs (for EWM and EWS at least), or is this perhaps representative of a correction to come in the week ahead (FOMC dynamics aside)?

2007 May 08 10:29 AM