This divergence created this question; Will US stocks pull weak global markets up, or will US stocks be pulled lower by global weakness?
This month it appears that US Stocks are playing a game of “downside catchup with weak global markets!”
Below looks at the S&P 500 over the past 50-Years on a monthly basis-
The S&P is testing the top of its 30-year rising channel with momentum at levels last seen in 1987, 2000 & 2007 at each (3).
The long-term bullish trend in the S&P would be damaged if the “S&P plays downside catchup with global markets and breaks support at (4)!
The iShares MSCI EAFE Index Fund ETF (EFA) rose $0.42 (+0.68%) in premarket trading Wednesday. Year-to-date, EFA has declined -11.82%, versus a 0.74% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.