FYI: No matter where in the world you’re invested, if you’re an equity investor, odds are that last week wasn’t a particularly good one. We’ll start with the US. The graphic below is from our Trend Analyzer tool and shows the performance and trading range levels for all of the major US index ETFs. As shown in the “5-Day % Chg” column, just about every major US index saw modest declines last week. The only exceptions were small caps (IJR & IWM) and micro-caps (IWC). If you are long equities, declines are never fun, but when you consider the fact that every single one of the US index ETFs listed was overbought heading into last week, it is only natural for them to take a pause at some point to work off the overbought conditions. Even after last week’s declines, more than half of the ETFs are still overbought and every one of them with the exception of the Dow (DIA) is still well above its 50-day moving average.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/us-vs-the-world-two-different-ends-of-the-spectrum/
