European Dogs Charts Update
Time for a review of the European dog’s charts. This is what we wrote on March the 28th;
We clearly see how several European indices all show the same pattern. The Bernanke rally has faded, and we marked a short term top. What is interesting, is the fact that we never even tried pushing the previous highs. This is the same psychology when we topped out over the previous tops. Did Bernanke fool the last momos covering their shorts, and more new “smart” longs entered the fake move?
One thing is sure, Spain’s Ibex is trading very badly, and we strongly believe Spain will become the next major point of focus.
The European indices have pretty much collapsed since then. We might get a short term bounce, but the dogs, Spain and Italy are looking at taking out new lows.
End of March Chart.
Spain in free fall mood.
Italy not looking healthy.