Below we provide our unique trading range charts for 21 major country indices. For each index, the light blue shading represents between one standard deviation above and below the 50-day moving average. When the price is within this trading range, it is considered to be in "neutral" territory. The red zone represents between one and two standard deviations above the index's 50-day moving average. Moves into or above the red zone are considered "overbought." Moves into the green zone (more than one standard deviation below the 50-DMA) are considered "oversold."
With the exception of a few Asian countries, most indices shown below are trading into overbought territory. China's Shanghai Composite is the only index trading below its 50-day moving average. Australia, Brazil, South Korea, Taiwan, the UK, and the US look to be the most overbought of the bunch. After trading in perpetual downtrends for nearly all of 2008 and the first few months of 2009, most countries have now been trading in solid uptrends for five months now, with only a brief pullback here and there. Brazil, China, Hong Kong, India, Malaysia, Mexico, Singapore, Sweden, Spain, South Korea, and Taiwan have all taken out their 52-week highs in recent months, while the rest still have a bit further to go.