INSUBCONTINENT EXCLUSIVE:
By Adam Haigh and Cormac MullenWith more than $9 trillion restored to global stock markets in less than two months, investors are
has about $930 billion in assets under management
Momentum indicators hint at overbought levels in Europe and the US, though are less of a worry in developing countries
of indicators traders are looking at across the globe.
AsiaAsian shares have rebounded about 12 per cent since their Christmas lows and are
nearing technical resistance, which may limit gains for now
The gauge is also at its upper Bollinger band, which is often seen as a sign a rally is extended.
EuropeEuropean shares have gone one better
The Stoxx Europe 600 Index closed above its 200-day mean on Wednesday for the first time since October
Still, its relative strength index -- a gauge of price momentum -- is flirting with overbought levels
While not always a reliable predictor for market turns, the last time the reading was this high, in May, the benchmark slipped into a
downturn that persisted for the remainder of the year.
USBroad participation in the US rally is keeping bulls content for now, having
augured well for stocks in the past
proportion since early 2016
So, many stocks have risen over the past two months that the NYSE cumulative advance-decline line has reached a fresh record, even though
the gauge itself is still below its peak.
Still, bears can point to a number of indicators that suggest the rebound is perhaps overdone
For example, cyclical shares that drove gains in US equities since Christmas lows, are starting to lose their edge relative to their
survey of global fund managers, euphoria towards emerging-market shares has cooled a tad
its upper and lower Bollinger bands, indicating no imminent sign of a pullback.
