Regardless of EUFN’s lack of direct Portugal exposure, the ETF could be facing technical problems that are on par with its U.S.-focused counterparts. [Trouble for Bank ETFs]

“Are European banks in trouble? If so, could weakness in the European financial sector spill over into stock markets around the world?,” asks Chris Kimble of Kimble Charting Solutions. “EUFN has formed a bearish rising wedge over the past few months and a few days ago broke below support.”

While EUFN does not have a direct Portugal problem, it does feature a combined 18% weight to Spain and Italy, two countries that investors are likely to repudiate if the situation in Portugal worsens. That much was on display Thursday as the iShares MSCI Spain Capped ETF (NYSEArca: EWP) and the iShares MSCI Italy Capped ETF (NYSEArca: EWI) each lost almost 2%.

iShares MSCI Europe Financials ETF

Chart Courtesy: Kimble Charting Solutions