Broad Global Participation Fuels Equity Strength

Trends improve even as pockets of weakness persist

Key Takeaway: With our global market trend indicator decisively clearing 50%, recent strength is more likely to persist, and inevitable consolidations are less likely to resolve lower.

While strength is increasingly broad, it is not universal. Hong Kong EWH 0.00%↑ and China FXI 0.00%↑ remain under pressure and broke-down to new lows last week. Joining the US in making new 52-week highs last week were Italy, Spain, Hungary, Poland and India. With China weakness weighing on the broad EM indexes, this might be a time for more regional or country-specific EM exposure. ILF 0.00%↑ (Latin America) and INDA 0.00%↑ (India) are two favorites.