International equity markets are starting to mirror the challenges faced by the U.S. with sharp sell-offs having unfolded recently around the world. In developed global markets, Japan has struggled in particular, with the Nikkei 225 dropping 4.1% today, breaking below key support defined by the weekly cloud model (shaded area on the chart) near 36,500. Secondary support near 35,000 appears in jeopardy from a momentum standpoint, below which a cyclical downtrend has officially taken hold referencing Fibonacci retracement levels. The weakness in the Nikkei 225 is also evident relative to the S & P 500 , noting the long-term downtrend in the ratio has continued following a short-term bounce that met resistance near the 200-day (~40-week) moving average. With no clear signs of downside exhaustion in our indicators, either in absolute or relative terms, further weakness and underperformance appears likely for Japanese equities in the near term. The iShares MSCI Japan ETF (EWJ) reflects the bearish setup. The weekly stochastics have seen an overbought downturn, suggesting sustained downside risk within the ETF’s trading range. Relative strength versus the SPX echoes a similar sentiment, as EWJ’s recent short-term strength is now encountering counter-trend signals from the DeMARK Indicators, supporting a resumption of the broader downtrend. These indicators suggest that EWJ is poised for a test of cloud-based and trading range support near $64-$65. A breakdown below this level would indicate a more significant cyclical decline for EWJ, targeting secondary support near $57. The monthly chart of EWJ shows the deterioration in long-term momentum, noting a monthly MACD ‘sell’ signal was triggered in January, reinforcing the risk of a trading range breakdown before a long-term bottom is established. Trading range resistance remains near $72, albeit not relevant at this time. Both the monthly and weekly technical indicators align in signaling further downside for EWJ (i.e., Japanese equities) in the intermediate term. At the same time, short-term relative strength is fading and global equities suffer under macro uncertainty. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. 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