Everyone Is Watching Italy
This morning, the Italian parliament voted on a budget that passed with 308 votes. While this budget vote passed it lacked the majority. This tells the world that Prime Minister Silvio Berlusconi might resign after losing his majority position. This Italian debt saga is simply taking over where Greece left off, however, this crisis is enormous compared to the Greek debt crisis.
The iShares MSCI Italy Index Fund (NYSE:EWI) has declined sharply since the results of the vote were announced. Traders should watch for intra-day support around the $13.00 area. Should this level fail to hold as support the EWI could trade down to the $11.80 area. Traders and investors must continue to follow this story very closely as it is moving the markets.