Other than the dollar, pretty much all asset classes have been getting hit hard since mid-day yesterday when the Fed announced its plan to taper off its bond buying if the economy continues to improve. And while it seems like it’s bad here in the US, we’re seeing pure carnage overseas.
Below is a look at our trading range screen for the 30 largest country ETFs. As shown, 25 of the 30 ETFs are in oversold territory, and 19 of them are at extreme levels (more than 2 standard deviations below the 50-DMA). All 30 are below their 50-days, and the US is actually the closest to its 50-day!
Earlier this year it was rare to see a stock market below overbought territory. As you can see, “overbought” is a foreign word for global markets at the moment. It’s a total bloodbath out there right now. Who’s ready to start buying?