(Click Image to Enlarge/ ETF Rewind Glossary)

Last week we doubted that this news cycle had run its course, a week later markets looks extremely oversold after having faced their worst weekly performances since October 2008. In fact, the S&P 500 (SPY) finished down -6.4%, while the EAFE International Index (EFA) suffered a whopping -9.6% correction.

The real news this weekend is the United States’ pledged currency support for the euro-zone. Well, it doesn’t serve our heavily foreign exposed large-caps for the euro to collapse either. It’s a binary world right now. How will markets see this — as supportive, or as a sign of just how bad things really are? We certainly could be poised for a significant bounce, although this just hardly “feels” over just yet. One this is certain, I cannot recall ever seen the VIX as stretched as it is right now at 88% over its 15-day moving average.

Week Nineteen of 2010 features the following economic and reporting calendars with a special focus on retail sales:

More thoughts on this environment. I hope you had a terrific weekend!

If you are interested in a significantly more thorough version of this weekly summary, consider taking a look at Market Rewind’s nightly ETF Rewind Pro service. In addition to coverage of nearly 200 ETFs across twelve major asset classes, you will find three model portfolios, daily market signals and commentary, pairs trading and various powerful portfolio management tools.

Never Investment Advice: Prior Weekly Summaries: ETF Rotation Models