A simple way of looking at longer-term momentum is to look at the percent of stocks trading above their 200-day moving average. When this figure reaches 20% we say that the index or sector is at oversold levels. This tends to mark more advantageous buying opportunities. When 80% or more companies are trading above their 200-day moving average we identify that as overbought levels and generally this is negative for future returns of that index or sector.
We currently have overbought conditions in the MSCI Europe and nearly overbought (78%) in MSCI North America. However, MSCI Pacific is nowhere near those levels and currently sits and a "middle of the road" 47%.