Five Charts Show How Bad the Emerging-Market Stock Rout Really Is

  • Developing-nation stocks have lost 12 percent in three weeks
  • Middle East and Latin American markets are at oversold levels

Emerging Market Stocks Sink to Six-Year Low

Here’s a technical analysis look at the current state of the selloff across developing markets.

1. About 40 percent of the stocks in China’s benchmark gauge are oversold with relative strength indexes below 30.

2. The benchmark emerging-market index of 838 equities is at its lowest level since 2009 after sliding 12 percent from a high on Dec. 25.

3. In this index of stocks on China’s second-largest exchange, there were 16 times as many decliners as advancers in the week ending Jan. 15.

4. The difference between downward and upward momentum in this Middle East gauge has been greater at week’s end less than 4 percent of the time in the past decade.

5. Latin American stocks are at extremely low levels based on this statistical measure, charted weekly.

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