Let’s begin by looking at a performance comparison chart of the SPDRs S&P 500 Trust Series ETF (SPY) with the ETFs discussed below. These ETFs are exhibiting stronger chart patterns than some of their peers. 

iShares MSCI Austrlia Index Fund ETF (EWA)

EWA broke out of a five month base three weeks ago and kept going. Early last week it hit resistance and has had only a minor pullback so far in which it tested support of its 12ema. In the short term further consolidation is likely but should be watched thereafter for buying strength to return. 

iShares MSCI Germany Index Fund ETF (EWG)

EWG made a clean break through resistance of $26.30 two weeks ago and is now forming a tight consolidation pattern above that level. That move put EWG once again above its 61.8 per cent Fibonacci retracement level of the downtrend measured from the May 2008 high. The pullback last week was minimal, finding support at the higher 12ema on a surge in volume. 

A strong rally unfolded from the mid-March low as EWG bounced off its 200ema. That momentum is still in place. Further consolidation at this point would be healthy before EEWG starts another leg higher, if it is to do so. 

iShares MSCI Thailand Investable Market Index Fund ETF (THD)

THD broke out of a five month base ($68.70 resistance) two weeks in an uptrend started off a test of 200ema support back in early February. The $68.70 level was tested as support last week and held strong. Further consolidation at this point would add some confidence to the next move higher, if it comes. 

Vanguard Emerging Markets ETF (VWO)

VWO has broken out of an almost five month base two weeks ago subsequently hitting resistance at the 127% Fibonacci extension level of the downtrend measured from the early November 2010 high. Last week it pulled back to test its 21 period exponential moving on the daily chart. 

The recent uptrend started at the bottom of the base and had enough strength to then break through the top at $49.53. This is bullish behavior that could continue once VWO has taken a bit more of a rest. Watch for further consolidation near the high of the base that can be used for a new entry. A close below the 21ema weakens the short term outlook.

(www.etf-portfolios.com)