2010-01-29

PIGS get slaughtered

Greece is doing a number on the euro and that, plus a general decline in markets, has the eurozone ETF sinking below its 200-day moving average.

Here's the Athens composite index. Notice the 50-day has crossed the 200-day.

Here's iShares Spain (EWP) crashing through its 200-day. Spain is a bigger threat to Europe and the euro because it is a much larger economy than Greece and still has a housing bubble.

I have no idea what will happen next week, but it seems Greece is coming to a head. Once bailout rumors begin, they can only be stopped by very forceful action. Words will no longer satisfy the markets.

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