Europe (VGK) slides right as folks head on holiday
The Vanguard FTSE Europe ETF (VGK) was an early-year relative winner as foreign equities generally outperformed the US stock market. Then came the March pullback which brought about a risk-off environment and flight to the dollar - both factor hurting relative returns of VGK. Even with a notable retreat in the greenback and a gradual shift favoring cyclical and small caps in late May through July, VGK did not perform all that well on a relative basis to the SPX.
Nevertheless, the Financials, Industrials, and Health Care-heavy fund managed to claw its way toward 52-week highs by late last month. The first two trading sessions of August - a noted time when much of the continent's populous is on vacation - have featured a downside price action on high volume. Moreover, a bullish false breakdown in the dollar only adds to technical and intermarket headwinds for VGK here.
I see support in the $59 to $60 zone while $64 is obvious resistance. A bigger Q3 pullback, always wont to occur, could lead to a target toward the mid-
50S (that would be a material 14% correction).
Nevertheless, the Financials, Industrials, and Health Care-heavy fund managed to claw its way toward 52-week highs by late last month. The first two trading sessions of August - a noted time when much of the continent's populous is on vacation - have featured a downside price action on high volume. Moreover, a bullish false breakdown in the dollar only adds to technical and intermarket headwinds for VGK here.
I see support in the $59 to $60 zone while $64 is obvious resistance. A bigger Q3 pullback, always wont to occur, could lead to a target toward the mid-
50S (that would be a material 14% correction). 
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.