International Breakouts To Watch

Despite recent slight dips from record highs for the S&P 500 and other global equity markets, all 22 major markets analyzed remain firmly in bull market territory. This broad-based bullish trend includes 'fresher' bull markets in Japan and Taiwan, alongside established ones like Australia's post-COVID recovery, with the UK, Canada, US, and Mexico also trading within 1% of their peaks, indicating that current pullbacks are minor corrections within an ongoing upward trajectory.

Analysis

Despite a minor pullback from record highs in the S&P 500 and other global indices, the underlying market technicals remain robust. An analysis of 22 major global equity markets indicates that all are currently in bull market territory, suggesting broad-based strength. This trend is not uniform in its maturity; markets in Japan and Taiwan are characterized as being in fresher bull phases, whereas Australia's bull market has been sustained since the COVID-19 pandemic lows. Notably, several key markets, including the United Kingdom, Canada, the United States, and Mexico, are trading within just 1% of their recent peaks, reinforcing the view that the current price action is a shallow consolidation rather than a significant reversal.

Key Decisions for Investors

• Investors should view the current slight dip in global equities as a potential entry or accumulation point, given that all 22 major markets analyzed remain in a confirmed bull market.
• Consider overweighting or initiating positions in international markets identified as being in 'fresher' bull cycles, such as Japan and Taiwan, to capture potentially earlier-stage growth dynamics.
• Given that key developed markets like the US, UK, and Canada remain within 1% of their highs, maintaining a long-biased equity strategy is warranted, while monitoring for any break below key technical support levels that might signal a deeper correction.