Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

EWG Still Leading Major Global Equity Indices to the Downside


Thus far, since it peaked at 32.37 on June 19, the iShares MSCI Germany (EWG) has declined 13%, and shows no signs of a budding-upside reversal at the moment, while its pattern still points lower towards 27.40/10 next.

Meanwhile, if the fact that the EWG peaked 5 weeks prior to the high in the SPDR S&P 500 (SPY) means that the EWG is leading a rotational correction in global equities, then shouldn't we be prepared for still-more weakness in the SPY?

A decline in the SPY that approximates the 13% correction in the EWG would place the former in a target vicinity of 175-173.

A less impactful correction for the SPY of 10% will place its target at 180-179, but in either case (-13% or -10%) such a correction will represent a downward traverse of the 2011-2014 channel-width, and also will include a meaningful breach of the rising 200-day EMA, now at 185.75.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!