Spain Rallies
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?
[source: FreeStockCharts.com]
Disclosure(s): long EWP at time of writing
