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The rally in the European stock market averages from the June lows has been surprising, especially considering the widespread fear about the euro in May. The euro strength has clearly been a key factor, but even the weaker economies like Spain have acted well. The iShares MSCI Spain ETF (EWP) has rallied above the 38.2% resistance of the decline from the November 2009 highs with the 50% resistance at $41.30. The major resistance converges in the $44-$46 area. A decline below $36 would reverse the short-term uptrend.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
