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Does it sound strange that Thailand’s performance could impact the S&P 500? It does to me!
One of the top performing countries over the past few months is Thailand…until last week! Thailand ETF’s (THD) rally took it up to a resistance line it has struggled with since late 2010. After hitting the line last week is broke support and seller rushed in, pushing the ETF down over 6% on the week.
Oddly enough over the past two years, when THD was hitting its resistance line, the S&P 500 was hitting a very similar line too. Past declines in THD and SPY have taken place around the same time.
Could Thailand be a leading indicator for SPY? It sure doesn’t seem like it should be at all. Stay tuned to see further selling pressure in THD takes place and if SPY attempt to follow it!