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[tomterrific14]

http://stockcharts.com/h-sc/ui?s=iev

also see Germany ETF, EWG and UK's ETF, EWU

[thoughtpwr]

Looks like trouble for Europe to me. I have a put on VGK (similar chart) that I have been sweating through the last month. The action today looks like a continuation pattern to the downside. We'll see how far down it goes. The P/C has grown by a factor of three over the last three weeks, even though the short interest hasn't. This ETF was a Bernie Schaeffer's recommendation last month with his analysis as follows: "Vanguard FTSE Europe ETF: VGK -- which reflects the momentum of major European markets -- is at a technical crossroads. Specifically, the shares are stalling 50% above their 2010, 2011, and 2012 triple low, which also represents double VGK's monthly closing low in 2009. Fundamentally, France's purchasing managers index (PMI) showed contraction last month, and expected stimulus from central banks is already factored in. Furthermore, the most recent BofA-Merrill Lynch study of fund managers found that Europe is the region they are most overweight, and was the only developed market that saw a month-over-month increase of global asset allocations. In the same vein, the ETF's SOIR of 0.23 indicates that short-term calls more than quadruple puts. What's more, this ratio sits just 1 percentage point from an annual low, pointing to a bigger-than-usual call bias on VGK. This abundance of optimism could leave European markets vulnerable to a mass exodus of bulls, should events across the pond not play out in their favor." That was in deference to the negative sentiment elements in the US market (still) last month.