International equitiy ETFs rally to new all-time highs.

Last Friday’s feature noted the relative improvement within broader international equities within the DALI Asset Class Rankings, driven primarily by an uptick in Latin American equities. Developed markets, primarily from Europe, have carried the leadership baton from a relative strength (RS) perspective within international equities for the better part of two years. The increase in RS for broader international equites within the DALI Asset Class Rankings make it the most improved asset class off recent market lows, but it also brings the top three assets within 13 signals – their closest since late 2023 and poising the Asset Class Rankings for changes and potential emergence of a leader.

While the relative strength picture between the asset classes in DALI is still developing, the point and figure trend charts of broader international equity ETFs, as well as some countries, have rallied to new all-time highs. After shifting back to a positive trend to kick off the month the iShares MSCI EAFE ETF (EFA) rallied to new highs during trading late last week before improving upon those highs during Monday’s trading. This action clears a prior all-time chart high that was established in October 2007. The SPDR MSCI ACWI ex-US ETF (CWI also rallied to a new all-time chart high during trading last week at $31.50, clearing resistance at $30.50 which had been in place for four years. Both EFA and CWI now trade on the verge of overbought territory (>70%) when examining their weekly distribution (OBOS) readings. Along with the two broader international funds, the Invesco Nasdaq Dorsey Wright Developed Markets Momentum ETF (PIZ) rallied to a new all-time high during Tuesday’s trading. Check the Daily Equity Report tomorrow for a deeper dive on PIZ.

Outside of broader international funds like EFA and CWI, country funds like the iShares MSCI Germany ETF (EWG), iShares MSCI Switzerland ETF (EWL), iShares MSCI France ETF (EWQ), and iShares MSCI Canada ETF (EWC), rallied to new all-time chart highs during Monday’s trading. Germany and Canada now reside in overbought territory (OBOS > 70%) and exposure could be considered on a pullback from current highs. Meanwhile, Switzerland and France are still considered to be in actionable territory based on the OBOS readings, but trade well above support on their default charts so exposure on a pullback for either would be prudent.

Germany now maintains a near perfect 5.96 fund score, while Switzerland, Canada, and France each score above 4. Year-to-date, Canada is up just over 9%, while Switzerland and France have rallied more than 19% and Germany is up 30%.