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[dalcindo]

Re: $MSWORLD ex USA, $MSEAFE (Developed countries), and $MSEMF (Emerging Markets)

Below are charts of Morgan Stanley Investment International (MSCI) indices on world markets, excluding USA ("$MSWORLD"); that of developed countries, including Europe, Australasia, and Far East ("MSEAFE"); and that of Emerging Markets ("$MSEMF")- These indices encompass the vast majority of world markets (about 98%).

A few factoids:
1 - While the US market represents about 2/5 of the world markets, that of developed countries represents another 2/5, and that of emerging markets (formerly "developing countries") represents the last 1/5 portion;
2 - While portfolio managers use the $SPX to compare performance against specific financial assets (usually domestic), international asset performance are gauged against these other two indices, depending upon the weigh given to US domestic, developed, or emerging markets.


Some important technical points about the charts:
1 - Values are expressed at market close (EOD)
2 - Weekly intervals are chosen to balance crucial moves against noisy reaction. Once the week closes, the candle reflects the sum total commitment of world positions for the underlying index for that week;
3 - A period of 5 year should encompass most relevant cycles and year-over-year technical reactions
4 - The index is represented within the top, main chart;
5 - A relative strength expression of the index vs. the $SPX (e.g.: $MSWORLD:$SPX) appears in black line underneath the main chart;
6 - The index and $SPX each appear superimposed with one another, under the relative strength, in order to reinforce this comparative visual study.

Last points:
a) All questions and requests will be entertain time permitting.
b) These charts have been newly added on PAGE 9 within the following organization: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2140281
c) Your vote is special to me. It nourishes the motivation that feeds the brain that nurtures the passion behind these charts.

Best trading to you, my friend.

Your friendly technician,

- Dalcindo

PS: Anyone noted that both world market as a total sum and developed countries indices have an RSI that recently confirmed a BEARISH reversal, whereas that of developing country index has posted a BULLISH confirmation. Just saying ... (wing, wink)


MSCI World (ex USA) Index (EOD) ($MSWORLD) - 5-Yr., WEEKLY Chart:



MSCI EAFE Index (EOD) ($MSEAFE) - Developed Countries - 5-Yr., WEEKLY Chart:



MSCI Emerging Markets Free Index (EOD) ($MSEMF) - Emerging Markets - 5-Yr., WEEKLY Chart:



- Dalcindo