Chart: Global Equities Breadth Check – As Bad As 2015 – ValueWalk Premium
Global Equities

Chart: Global Equities Breadth Check – As Bad As 2015

As I was going through and updating some client chart packs, I noticed an interesting development in the global equities country breadth charts.  The proportion of countries (we track 70 for this analysis) trading above their respective 200-day moving average (a good rough proxy for whether a market is an up vs down trend) reached the lowest point since the twin corrections and near-miss global recession of 2015/16.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Q2 hedge fund letters, conference, scoops etc

I think this is a key chart to be across because it feels like we are in a similar potential kind of "near-miss" scenario where the pressure is really starting to mount on emerging markets.  The way a lot of key markets, e.g. global cyclicals vs defensives, are trading right now it's not going to take much at all to trigger off a broader and deeper correction.  So the improvement that we've already seen in valuations might look better before long...

Global Equities

BONUS CHART:  Another traditional market analysis technique applied to country breadth; this is the number of countries making 52-week new lows.  In line with my comments above, the concern with this one is that the indicator looks to be in a steady uptrend (but without making a cathartic blowout - at least not yet!).

Global Equities

Article by Top Down Charts


Saved Articles