When it comes to portfolio construction and adding global exposure to a portfolio, EFA helped a good deal over the past year (see lower left inset above) up 15%.  Even though that was 10% less than the S&P 500’s return, it was 25% better than the return of EEM!

Now EFA finds itself at its 61% Fib retracement level of the 2008 financial crisis and at the top of a trading channel. 

A break above this resistance would be a big positive for EFA and it would continue to help performance for those looking for international exposure. This is pattern is an important test per where EFA will be 6 months from now!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past