After a volatile but stagnant final two months of the year, in which the market straddled the moving averages with no clear direction, the S&P 500 Index (iShares Core S&P 500 (NYSE:IVV)) once again broke down in early January, before stabilizing at the 1867 low set in August 2015. It has rebounded since, breaking through both moving averages and coming to within a couple percentage points from a new all-time high. The S&P 500 is up 2.07% year-to-date after posting a gain of just over 1% in 2015.
The EMU Index (iShares MSCI Eurozone (NYSE:EZU)), or the European Economic and Monetary Union, fell more gradually over a longer period of time when compared with its US counterpart. And it never recovered with the same ferocity. Europe has been consistently underperforming the US for some time now, after outperforming for the first part of last year. The index is down 2.65% for all of 2016.
After a huge “irrationally exuberant” run and subsequent collapse last year, the Chinese markets (iShares China Large-Cap (NYSE:FXI)) rebounded above the 50-day MA on its way to resistance at the 36 level. The China Large Cap index is now down 4.85% in 2016.
A stronger US dollar, ISIS, and crashing crude oil prices are just a few of the things the Middle East Index (WisdomTree Middle East Dividend (NASDAQ:GULF)) has to contend with. The supply of crude oil is probably the biggest driving factor of this market, and that is still a net negative for the index, especially with Iran coming to the market. Interestingly enough, the index is up 1.94% since the beginning of the year.
Another region hit hard by the commodity bust. And another region that has had a remarkable run in the first part of the year. The Latin American market (iShares Latin America 40 (NYSE:ILF)) broke down in May and August of last year, and again in December. But since then, it has been on a tear, breaking above both moving averages. It has moved concurrently with the crashing commodities market and now while it’s been surging. The index has recorded an impressive 19.96% gain this year.
Africa’s market (Market Vectors Africa (NYSE:AFK)) has been hurt by continued upheaval in Northern Africa and Nigeria, coupled with a weak global economy and a worsening political climate in South Africa. It has rebounded with the markets in general. The index is up 8.66% for 2016.
Technically, Japan (iShares MSCI Japan (NYSE:EWJ)) is no longer holding up well, having broken support at the 11 level. It now finds itself under both moving averages. Japan is down 8.17% YTD, after being the best performing market in 2015.
