Russia ( RSX , quote ), the market with the most exposure to Cyprus, traded hard to the
200 day moving average and bounced.
[caption align="alignright" caption="Red Square"] [/caption]
The Micex looks vulnerable to after
shocks as investors will sell Russia and ask questions later.
After years of watching this market closely, this is not a dip that I'm ready to buy. Putin will be littering the tape with caustic remarks, but more importantly, the EU and the IMF knew they were hurting wealthy Russians with Cypriot bank accounts more than any other group. Lots of oligarch money and large industrial group money is kept in Cyprus.