France ETF Under Pressure

The iShares MSCI France Index EWQ is under pressure today, trading lower by more than 3%, on rumors of a Spanish report that allegedly said French President Nicolas Sarkozy threatened to remove his country from the European Union unless other countries step up to help Greece. France is widely viewed as the second-strongest member of the EU behind Germany, but the distance between first and second is viewed as large by investors. Sources close to Sarkozy's office have denied the reports. The $22 area was probably support, so starting a small position today might be a good idea. EWQ is currently trading at $21.46 and another $3-$4 of downside might be in store.