A chart depiction of the washout in EM stocks: They will be interesting soon, but not there yet

With the MSCI Emerging Markets Index down about 17% from its high at the end of April we thought we’d provide a visual depiction of the sell-off so readers can glean a better understanding of the action underneath the surface of the markets. The percent of stocks above their own 200-day moving average is approaching what we’d consider to be an oversold level, but is not quite at the lows seen in the 2011 sell-off or during the “taper tantrum”. Our blunt momentum indicator that measures the percent of stocks whose 50-day moving average is above their 200-day moving average has turned lower, but again would need to take another leg down for this to become a really interesting oversold low (click the circle below on the right to view this chart).