The First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) rallied more than 2% (5/16 – 5/23) last week, and Tuesday’s trading saw the fund rally above $66, marking a multi-year high and placing the fund within one box of its all-time chart high.
Last week’s action saw developed markets outpace their emerging market and US equity counterparts. The First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) rallied more than 2% (5/16 – 5/23), and Tuesday’s trading saw the fund rally above $66, marking a multi-year high and placing the fund within one box of its all-time chart high. This builds on the positive technical developments that occurred early last week with the market RS chart comparing the fund against the S&P 500 Equal Weight Index (SPXEWI) giving an RS buy signal for the first time in the fund’s history. This places the long-term relative strength for the fund favoring FDT over SPXEWI in addition to near-term RS favoring the ETF.
The trend and relative strength chart improvement within the past week has driven the fund score for the ETF to its highest in history at 5.86, outscoring the average score for the fund within the Non-US (4.21) and Global Developed Markets (3.91) groups. Year-to-date, FDT is up over 20% outpacing the MSCI ACWI ex-US ETF (ACWX) by roughly 7%. This week’s action has brought the ETF near-term top of the 10-week trading band and into overbought territory indicating those seeking exposure to the fund are best served by looking for a pullback to the lower $60s before adding exposure. Note that prior resistance at $61 may be seen as near-term support, while additional may be found at the 2024 and 2025 chart lows in the lower $50s.
