Are Global Markets Playing A Dangerous Game Of Follow-The-Leader? by Jennifer Thomson, Gavekal Capital

As we noted earlier today, the Emerging Markets are really struggling when you look at a variety of our market internals indicators–especially compared to Developed Markets.  Here we go into a bit more granular detail, this time looking at the momentum of stocks in each country as depicted by the percent of issues with the 50-day moving average above the 200-day moving average.  As most readers realize, the failure of the 50-day MA to stay above the 200-day MA is typically an indication of a shift in the longer-term trend of a given security or, as in this case, a group of equities.  The main takeaway here: Emerging Markets don’t look much better than in any of the charts we showed earlier– and momentum in a number of the so far more resilient Developed Markets’ equities appears poised to follow the EMs on their sharply lower trajectory.

Developed Markets

Global Markets

MSCI Pacific

Global Markets

Global Markets

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MSCI Europe

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MSCI  North America

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Emerging Markets

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MSCI EM Asia

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MSCI EM EMEA

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MSCI EM Latin America

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