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Global Stock Markets Rallying, Close To All-Time Highs

Global stock markets are performing remarkably. U.S. stock markets went 1 percent higher today, and leading indexes are trading at all-time highs (except for the Russell 2000 which is only 15 points from all-time highs). The Dow Jones Industrials broke through the psychologically important 20,000 points intra-day, an event widely followed by financial media worldwide (see Bloomberg, BBC and The Guardian among many others).

Visibly, the U.S. stock market rally is pulling other global stock markets higher.

So far, InvestingHaven’s research team forecasts seem to be quite accurate. Their 2017 stock market outlook identified the profitable market segments and it was a correct call that no stock market correction is looming but rather segment rotation was ongoing.

Global stock markets at or near all-time highs: ACWI and VEU

The ACWI ETF, representing global stock markets, broke to all-time highs today. ACWI includes stocks from 23 developed and 23 emerging markets, and represents 85% of global equities. The U.S. accounts for 53% of the index. The current chart setup shows bullish momentum, and that suggests more gains will follow.

As said, U.S. stocks are pulling ‘foreign’ stock markets higher as well, with European and several emerging markets performing very well.

The ETF called Vanguard FTSE All-World ex-US (VEU) is trading at 18-month highs, and it just 7 percent below all-time highs. The VEU includes foreign stocks from 50 countries. Its biggest weightings are in Europe (44%), the Pacific Region (30%), and emerging markets (18%).

VEU is nearing a breakout level. The purple trendline on the next chart represents strong resistance (46.50 points). InvestingHaven’s research team considers this to be the most important price level on the chart: a break above that level would suggest a breakout, and all-time highs would likely be taken out. However, both 46.50 and 49.50 should be broken for a bullish confirmation.