The relative ratio of the World Ex-US index versus the S&P 500 has made a 10-month high.
Here’s the chart:
Let's break down what the chart shows:
The black line shows the relative ratio of World Ex-US (VEU) versus the S&P 500 Index (SPY).
The Takeaway: While the focus in the US is on Trump and his tariffs, the rest of the world is moving higher!
The relative ratio of the World Ex-US index vs the S&P 500 has broken out and is reaching 10-month highs.
Last month, I shared a note outlining the key changes I observed in the ratio between the World Ex-US index vs the S&P 500. At that time, there wasn't enough evidence to confirm a change in trend.
However, I can now confirm that a trend change is underway.
We are seeing a decisive move higher above its 16-year downtrend line.
We are seeing a breakout above the support and resistance level from 2024.
The relative ratio is above both its 50-day and 200-day moving averages.
The 50-day moving average has crossed back above the 200-day moving average.
The slope of the 50-day and 200-day moving averages are trending upward.
And, the relative ratio is in a bullish momentum regime.
I might be wrong, but the weight of the evidence is highly skewed in favour of the World Ex-US right now.
Do you think that the World Ex-US will continue to outperform?
Grant Hawkridge | Chief Aussie Operator, All Star Charts
PS: Short-term trends are shifting, and Steve Strazza’s already on it. Join him Friday at 10:30am Eastern as he breaks down the next wave of setups. Charts, trades, and strategy — all in one live session → Register here.
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