If there were any doubt that the bear has reared his vicious head in international markets, then those doubts should be erased when we check out the iShares MSCI EAFE Index (EFA). This exchange-traded fund (ETF) measures the performance of markets in Europe, Australasia and the Far East. 

As you can see, EFA has come down nearly 20% from its April high, a very harsh down move in just more than six weeks. This bearish sell-off easily took out technical support at both the 50- and 200-day moving averages.

As fiscal turmoil continues to reign supreme in Europe, I think we are liable to see EFA remain well below its long-term trend line. Now, that’s not to say that short-term bargain hunters won’t step into the stock looking for a quick trade. The possibility of a trading bounce in battered EFA is indeed there.

However, if you are anything other than a very short-term investor, I recommend that you steer clear of the international bear. As we’ve seen since early April, his bite can be really nasty.