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.
“A close above 37 could signal a new breakout and perhaps a significant uptrend.”
Vix And More
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, vixandmore.blogspot points out.
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?
Related by the Econotwist:
Fitch: Global Economy At Critical Juncture
German Banks With More Than 200 Billion Euro In Faul Credits
Citigroup: Euro Zone No Longer A Single Economy
Fitch: Spanish House Prices To Fall Another 20%
Pressure On Spain To Cut More
EU Prepares For Spanish Bailout, Newspaper Says