GLOBAL EQUITY MARKETS – October 27, 2018
REVIEW
The benchmark for Global equity markets performance, iShares MSCI All Country World Index ETF (ACWI.O) broke down its February lows with a long weekly candle. The ACWI ETF is now clearly below its long-term 200-day moving average. February low at 69.7 levels will become the new strong resistance. Next support area for the ACWI ETF is between 63 and 65. In the short-term the daily chart needs to form some sort of a reversal chart pattern to conclude that the downtrend is over. The iShares MSCI All Country World Index ETF (ACWI.O) is in a downtrend.
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GLOBAL EQUITY MARKETS – October 20, 2018
REVIEW
The iShares MSCI All Country World Index ETF (ACWI.O) is trying to hold above February 2018 lows. After reversing from the horizontal resistance at 74.8, the ETF fell below its long-term average and currently is trading below the 200-day average. This week's candlestick was a "doji". It shows that price found short-term support. Failure to hold above February lows can send the ETF towards the next strong support area at 63 levels.
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GLOBAL EQUITY MARKETS – October 13, 2018
REVIEW
Since the beginning of 2018, the performance between Emerging Markets and Developed Markets diverged. Emerging Markets have underperformed the Developed Markets by around 15%. Two charts below show the relative performance ratio between EEM and ACWI and also the MSCI indices, MSCI Emerging Markets Index vs. MSCI World Markets Index. You can see the fluctuations on the ratio over the years.
2016-2017 was a period of EM outperformance. In the beginning of 2018, the ratio reversed sharply and the past 10 months resulted in a massive underperformance for the Emerging Markets. We might be at an inflection point as the ratio is now testing 2016 lows. Emerging Markets might start outperforming the Developed Markets once again. (The ratio is calculated by dividing two time series EEM & ACWI and indexing it to 1 on the 1st January 2018)
