As US stocks have gained ground, attention on what's going on in
the stock markets of Europe, Asia, and elsewhere has waned
somewhat. And now, with stocks in the US beginning to pullback once
again, European stocks aren't the only ones that have resumed their
corrections, leading a broad number of international equity markets
to or near technically oversold levels.
iShares MSCI Mexico Index Fund ETF
) pulled back by more than one and three quarters of a percent on
Friday, reversing lower and potentially resuming a sell-off that
had taken the fund lower for five out of the previous seven trading
days. EWW is now trading just inside of technically oversold
territory above the 200-day moving average, but has already earned
positive, short-term edge
of 1%, and a "consider buying" rating of 9 out of 10.
Even greater edges are to be found in the pullback in the
iShares MSCI Germany Index Fund ETF
), which pulled back by more than 3% on the final trading day of
the week. The two-day bounce here managed to return the ETF briefly
to overbought levels on Thursday. But with short-term traders
moving in quickly to take profits and those who had been betting
against ETFs like EWG spotting another opportunity to sell short an
overbought German ETF, the fund is again trading near, two-week
lows and will open oversold when trading begins on Monday.
The selling in the
iShares MSCI Japan Index Fund ETF
) has managed to drag the fund into oversold territory. And this
retreat, a pullback of 1% on Friday, has earned EWJ a
"consider buying" rating of 8 out of 10
ahead of Monday's open. Shares of EWJ are actually trading nearer
to their 200-day moving average than nearby, two-week lows. But any
significant selling on Monday could easily take EWJ beyond both
iShares MSCI Spain Index Fund ETF
Stocks, ETFs, options and more!
to learn how to get Larry Connors' all-new,
Daily Battle Plan
for free for 7 days.
is Editor in Chief of TradingMarkets.com