Investors are watching European single-country exchange traded funds tracking the periphery for signs of improvement or deterioration in the debt crisis.

One indicator is the nearly $200 million iShares MSCI Spain (NYSEArca: EWP), which rebounded somewhat Friday after Thursday’s 8% drubbing.

Analysts say that if the Eurozone rescue fund is expanded, as planned, to $622 million, debt aid to Spain is possible. [Italy, Spain ETFs Fall Over 15% in One Month]

Global markets rallied on Friday on reports the European Central Bank was ready to buy Italian and Spanish government bonds.

Amid the turmoil, Spain is facing general elections while unemployment hovers around 20%. [Debt Fears Rattle Spain, Italy ETFs.]