Pullback Not Global
This pullback has not been global. If you look at the ConnorsRSI readings on every liquid Country Fund ETF (over 50 of them), only the US, especially the Russell and Nasdaq are oversold. All other countries are either neutral to overbought.
This type of divergence occurs 1-2 per quarter and it often quickly comes in line. The reality is that the US is adjusting to slightly tighter monetary policies in the future along with a steadily rising VIX. But even VIX 14 is still extremely low and well under the historical average of 20. With the rest of the world picking up steam, the US may need a few more days to adjust but longer-term the trend remains higher until shown otherwise.
Have a great weekend!