Julius's de Kempenaer's RRG charts do a great job of visualizing the market rotation. The falling $USD made most investments in foreign markets do well. Some foreign markets have been dropping for three months in local currencies (France, Germany, Japan, Canada, Australia) but the charts priced in US Dollars made them look stellar.
With the dollar stabilizing the last few weeks, these foreign markets have fallen out of the leadership quadrant into the weakening quadrant. Japan is still in the green quadrant but pointed down. The Nikkei ($NIKK) made new 3-month lows on Monday in the local currency. The European markets have moved from leading to weakening. The real question is can they turn back up here?
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