Thanks to Global Macro Monitor, here is a momentum chart showing the oscillation of prices around major markets around the world. The RSI moves between zero and 100 and is considered overbought with a reading above 70 and oversold when below 30.

It seems like Bovespa (at almost 30) is approaching an oversold condition, though the RSI can sustain an oversold reading in a strong down trend (or vice versa).

A “short (overbought) China, long (oversold) Brazil” pair trade could be an interesting short-term money maker…

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