In mid-November, the S&P 500 ((IVV)) had just finished breaking its 200-day moving average on its way to a multi-year low at the 1343 level. Since then, the index has been on a tear, gaining over 24% in a little over 5 months. It now finds itself at all-time highs, above short-term support, its 50-day moving average, and its 200-day MA. Pretty impressive. But there are signs for concern though, as the index is above the 70 level in the Relative Strength Index, a sign that the index is overbought in the short-term. The index is also 13% above its 200-day MA, which historically is very high, also signaling overbought conditions. The S&P 500 is up 17.79% year-to-date.

 

The Latin American market ((ILF)) is breaking down technically. Since the beginning of the year, the index has formed an ugly downtrend line, breaking its 50-day and 200-day MA in the last week alone. Given the volatile nature of the commodity markets as of late , and the fact that this region’s economy is uber-dependent on the various commodities, this bearish move down was expected. The index has recorded a -2.53% loss so far this year.

The EMU Index ((EZU)), or the European Economic and Monetary Union, broke out to the upside following a volatile past three months. THe index now must break through the 35.50 level for it to hold these gains. If it fails, expect it to test support at the 50-day. The index is up 5.83% for all of 2013.

The Middle East ((GULF)) continues to prosper despite tensions over Iran’s nuclear ambitions, instability in Lebanon, Iraq, and Afghanistan, and a never-ending civil war in Syria. Add in a growing concern over the protection of oil and gas assets following the Algerian terrorist attack and French involvement in Mali and you would think the markets in the Middle East would be at the very least shaken. But nothing seems to tire this market, as the world’s insatiable demand for crude has created a floor for which any downward movement quickly diminishes and reverses, even as the commodity markets correct. Not even a reversal in the price of crude oil over the past few months has dampened spirits in this market. The index is up 21.89% YTD.

After a stellar run into the 30s, Africa’s market ((AFK)) has staggered and formed a downtrend line since the beginning of the year. The turmoil in Mali and Algeria, as well as continued upheaval in Egypt has managed to put a clamp on Africa’s run. The index finds itself forming a wedge pattern, where its downtrend line will soon intersect its upward sloping moving averages. Once this happens, the index would soon break out in either direction. Africa is down for the year, losing -3.08%.

Despite a weakened Chinese economy and renewed threats and a successful nuclear test from North Korea, the Pacific x-Japan index ((EPP)) has performed remarkably. It has traded between the 48 and 50 range for a few months before finally breaking through the 50.50 level in the last month. Since then though, the index has retested support at the 50-day MA, and now finds itself in a precarious state under the 50-day. It is up 5.77% YTD.

Japan ((EWJ)) was one of the worst performing markets in 2012 before a monstrous run took hold beginning in mid-November. The index finds itself above both moving averages after retesting support in the beginning of April. Look for this bullish trend to continue, as the BOJ continues to devalue the Yen. The index is up 24.21% for all of 2013, the best performing market.