iShares MSCI Italy Capped (NYSE: EWI) My No. 1 Ranked International ETF is Signaling 'Buy' Now

Some studies have shown that most of a stock's return is due to the direction of the trend in a bull market. This can be seen in stock market breadth data. Breadth indicators include the advance-decline line and other data series that measure the number of stocks going up or down.

On days when broad market averages like the S&P 500 close higher, we generally see most stocks close up and breadth is positive. When the S&P 500 is down for the day, we usually see a majority of individual stocks fall and breadth is negative. This is true for weekly and monthly data as well as daily time frames.

Bull and bear markets also tend to play out on a global scale, and the indices of most countries will move up and down together. This tendency of global stocks to move together has been increasing in recent years as global economies have become increasingly interconnected.  (more)

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