Gathering Clouds In Euroland

Elections across Europe and Great Britain this past week have shown serious dissatisfaction with the status quo.  The monetary inflation on the part of the European Central Bank has benefited the elite bureaucracy in Brussels at the expense of the average citizen, and voters are unhappy.

Not even the bankers of Europe are content, as share prices of a number of prominent Eurobanks (as traded on the US exchanges), show price levels far below the price range of 2008.

(Charts courtesy Stockcharts.com)

Unlike the Quantitative Easing program by the US FED, where the money went straight into the banks, the Eurobanks did not benefit from the ECB printing presses.

By comparison the US Banking Index is almost back to 2008 levels.  The 50-Week MA is in positive alignment to the 200-Week MA, while both are in uptrend (green oval). 

In America the Plunge Protection Team, working with the banks has been able to keep the Wall Street rally going for the past few years. 

In Europe the chart picture for several major stock indexes is beginning to show cracks.

Featured is the monthly chart for the DAX of Germany.  Price is sending out red flags that warn of a coming price pullback.

Featured is the monthly bar chart for the FTSE of Great Britain.  The triple top is not confirmed by the MACD nor the RSI.  This also warns of a coming correction.

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Peter Degraaf is an independent stock trader with over 50 years of investing experience.  He sends out a daily market report to his many subscribers.  To view a recent report please visit www.pdegraaf.com

DISCLAIMER:  Please do your own due diligence.  Peter Degraaf is NOT responsible for your investment decisions.