Broken Hearts, Broken Charts For EU ETFs

Another day, another round of Greek default fears. This sad state of affairs in Europe has been carrying on for well over a year and some would argue that it's best to just find a way for an orderly default for Greece and let the troubled Mediterranean nation leave the euro. That's one way of looking at things. The other way is that losing one euro member imperils the whole lot. Regardless of the outcome for Greece, and it's likely to be bad, ETFs tracking other EU members are now in major technical trouble. Here's a look at Europe's boulevard of broken ETF charts. iShares MSCI France Index Fund EWQ: As we previously noted here on Benzinga, the iShares MSCI France Index Fund could be in for a major dose of pain if Moody's does in fact downgrade the credit ratings of BNP Paribas, Societe Generale and Credit Agricole, France's three largest banks. With less than two hours left in Monday's trading day, EWQ is trading below $19 for the first time since early 2009. One support level around $19.50 has been violated. If the same happens around $18, lookout below. iShares MSCI Spain Index Fund EWP: The iShares MSCI Spain Index Fund has a chart that is just ugly, similar to Spain's economic situation. Support failed at $32. Support failed at $30. As is the case with EWQ, EWP is now spending time in a technical area that it hasn't seen in over two years. Don't be fooled by the yield this Spanish play is now offering. It's not worth the risk. iShares MSCI Italy Index Fund EWI: Italy is trying to implement some stiff austerity measures. Problem is Italians are basically resisting these plans the way their Greek neighbors did. Making matters worse is that Italy has a larger economy than Greece and Spain. EWI was flirting with $20 in May. Today, the ETF flirts with $11. iShares MSCI Germany Index Fund EWG: Germany was supposed to carry the day for Europe. Maybe it will, but that's also part of the problem. The Euro zone's biggest economy can't do all the work and bailout the PIIGS all the time. It's unreasonable to expect all these bailouts wouldn't catchup with Germany eventually. The iShares MSCI Germany Index Fund has violated two important technical levels in the past week and looks poised for at least another 10% on the down side. iShares MSCI Austria Investable Market Index Fund EWO: This ETF has a tendency to fly under the radar on the way up and on the way down. Think about it: Austria hasn't been grabbing many headlines lately. In Europe, that should be a good thing. For EWO, it hasn't mattered. The ETF has seen more than a third of its value trimmed since May and is now languishing around price levels not seen since July 2010.