Things look to be getting interesting, as it appears that investors are beginning to rotate into some of the other beaten up global equity ETFs, at least on a near-term basis.

Some absolute price improvements can be noted, but relative to the S&P 500, the downtrends that began in January 2013 look to be ending. Although this is suggesting some kind of stabilization,   it may be a bit premature to call for a sustainable reversal at this point.  So far, the most notable appears to be occurring with the iShares MSCI EAFA Index ETF (EFA).

In this instance, the outperformance may be able to sustain for the next several weeks to months.  On the other end of the spectrum, the iShares FTSE China Large-Cap ETF (FXI) is just beginning to show signs of basing, which is a healthy start.

SPDR S&P 500 ETF (SPY):  A small head and shoulders top pattern has been forming since Mar. 2013.  By no means does this have the makings of a major trend reversal, but it does indicate that distribution forces and/or profit taking are in the works. By the looks of the pattern the right shoulder(s) needs developing and may take another month to do so.  The level on the downside to watch will be the neckline support near 153-153.50 as this corresponds to the Feb. 2013 high, the Mar. 2013 breakout, and the Mar/Apr. 2013 lows. A violation of support opens the door for a move to the Feb. 2013 low (149).

PowerShares QQQ (QQQ): Relatively speaking (vs. the S&P 500), QQQ could be exhibiting signs of some kind of near-term stabilization as evident by the break above the steep Sep. 2012 downtrend.  From a price perspective the risk/reward profile is still fairly neutral as QQQ trades near the middle of its Nov. 2012 uptrend channel.  The Apr. 2013 and Sep. 2012 highs of 70.17/70.58, respectively, represent initial resistance.  The top of the channel closer to 71.50 is secondary resistance.  Initial support near 67.50 corresponds to the bottom of the uptrend channel.

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