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Although the Eurozone’s demise has been frequently forecast, it has managed not only to survive, but also thrive, as MoneyShow’s Tom Aspray examines whether now is a good time to jump in or wait for further pullback.

As the US stock market has continued to grind higher, the Eurozone countries have corrected from the highs that they made at the start of February. The Vanguard MSCI Europe (VGK) is down 3.2% from its highs and a similar pullback in the Spyder Trust (SPY) would take it back to the $147 level.

The US market was again quite resilient on Monday, as while the ranges were tight, the major averages closed above the day’s lows. The bank stocks did the best Monday as they closed the day with solid gains.

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The % performance chart compares the performance of the Vanguard MSCI Europe (VGK), iShares MSCI Germany Index (EWG) and the Spyder Trust (SPY) since the November 16 lows. Both VGK and EWG were much stronger than SPY on the rally up to the mid-December highs.

The Eurozone ETFs also held up much better than the SPY on the late December drop and were strong in January as VGK was up over 20% at the start of February. It is now just up 15% for the time period. EWG has also declined from highs and is getting close to SPY’s performance line.

Can this correction go further or is now the time to buy?

NEXT PAGE: Is This a Warning for the US Market?