With all the excitement over the performance of Spain’s soccer team in the World Cup, it has been easy to overlook the performance of the Spanish ETF, EWP. From a low of 29.85 almost a month ago, EWP has now rallied 22.1%, even as the country’s credit default swaps have remained elevated.
As the chart below shows, a close above 37 could signal a new breakout and perhaps a significant uptrend.
More importantly, Spain is the tipping point in the European sovereign debt crisis as I see it. In a nutshell, as goes Spain, so goes Europe.
For more on related subjects, readers are encouraged to check out:
- Recent Performance Divergence in European ETFs
- Where and When Will the Euro Bottom?
- Greece, Spain and the Pulse of European Anxiety
- Are You Watching Greece?
Disclosure(s): long EWP at time of writing