Gavekal Capital: Relative Strength Breakdowns in Developed Europe

Wednesday, January 28, 2015

Relative Strength Breakdowns in Developed Europe

Relative to the All Country World Index (ACWI), only four European countries' constituents have managed to outperform-- Belgium, Denmark, Ireland, and Switzerland (for now):

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Country indexes for Germany, Netherlands, and Sweden remain in trading ranges:

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In aggregate, stocks in Finland, France, Italy, and Spain have declined on a relative basis for years-- but recently rallied to at least challenge resistance at the long-term downtrend line:

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Austrian, Norwegian, Portuguese, and UK constituents, also in multi-year relative strength downtrends, recently accelerated to the downside:

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