Market Sells Off on News of the Cyprus Deposit Tax; China Fund Enters Bearish Trend

Fidelity Spartan 500 Index Fund (FUSEX, last change: -0.54%)

As we pointed out in previous blogs, the stock market became overbought in recent weeks and was ripe for a pull back. Equities did sell off today due to worries about the impact of the Cyprus Deposit Tax on other Eurozone countries. The selling was broad based with 88% of Fidelity’s Select sector funds closing lower.  The Fidelity Spartan 500 Index Fund (FUSEX, last change: -0.54%) was also down slightly, but the chart pattern continues to look bullish.

Fidelity China Region Fund (FHKCX, last change: -2.18%)

The rotation in international markets continues. Today the Fidelity China Region Fund (FHKCX, last change: -2.18%) was the weakest performer. FHKCX dropped below its 100 day moving average indicating the beginning of a bearish downtrend.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

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