Brazil and Russia breaking down

Latin American and Eastern European equities are experiencing bearish multi-year breakdowns, according to Riccardo Ronco, Head of Technical Analysis at Aviate Global in London.

Ronco looks at the MSCI indices for Brazil, Russia, Latin America and Eastern Europe in terms of both price action and relative strength versus the MSCI World Index, and finds them all in “technical medium-term trouble”. Russia is the worst: “Its pace to the downside is accelerating in both absolute and relative terms.” Ronco recommends staying underweight these markets in the medium-term and selling on rallies.

See report, which also includes an analysis of US & EU equities, Commodities and the Euro.