Today 65% of the liquid Country ETFs are trading under the 200-day signifying a global bear market.30% of the Country ETFs have ConnorsRSI readings under 10 today, something we have yet to see since creating ConnorsRSI.
As we saw in 2008, bear markets can cause havoc and that’s the way it’s playing out in a number developing countries, especially India (look at the past week of trading in PIN and IFN). The U.S. markets are balancing a global flight to safety coming here being offset by higher interest rates spilling into the selling of U.S. stocks, especially the higher yielding stocks.
I would expect a global bounce here and it will occur on any type of good news coming out of the Fed. Yesterday’s message was reality – it’s a divided Board of Governors, but one which has been very astute at moving markets with their words. If they stay in step, the world markets could see a very good short term bounce.
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