BofA Warns "Europe Looks Frightening" - Trades Like 2001, 2008

Tyler Durden's picture

"Europe looks concerning" warns BofAML's Stephen Suttmeier, pointing out, rather ominously that the broad European index - STOXX 600 - is trading like it did in 2001 & 2008.



The STOXX Europe 600 (SXXP) is trending below declining and bearishly positioned 26 and 40-week moving averages. ECB quantitative easing has not reversed this bearish trend.

The 2016 set-up is similar to early 2001 and early 2008 with 350 important resistance and 300 important support. Both 2001 and 2008 saw rebounds into bearishly positioned and falling 26/40-week MAs that formed important lower tops in May.

We think this pattern could repeat or at least rhyme moving into May 2016. The breaks below 300 in September 2011 and June 2008 led to much deeper weakness and a similar break in 2016 could see the SXXP trend down toward 200.

Source: BofAML

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Infield_Fly's picture
Infield_Fly (not verified) Apr 11, 2016 5:25 PM



But the SP500 will be just fine.  



zorba THE GREEK's picture

Look for a halt to interbank lending and it is over for Euro banks.
There will be an effort to bail out the banks again, but Germany
Will draw the line. And it will promptly cross the pond.

thesonandheir's picture

Why interbank when the ECB will more than suffice?

Kissy Ass's picture

Have any of you noticed how sexy the FBI people are?

Smart and sexy. Rulers of the globe.

Flying on their Gulfstreams that they did not pay for... Shooting the goy in the back.


Heavy's picture

Also, to my eyes "like" = worse than

Theonewhoknows's picture
Theonewhoknows (not verified) Heavy Apr 12, 2016 6:30 AM

It is funny how the whole post-WW2 generation having the horrors of life they had chose guarantees of socialism and social-democracy with ever expanding government to answer their fears. The price will be paid by uneducated generation of their children mesmerised with Iphones and instagram believing those who their parents believed. 
With statistics so much in the gutter we should be bracing for another 2008

sheikurbootie's picture

My favorite part will be when the Fed attempts to catch the falling knife.  It's hard to stop a trillion dollar falling stock market meteor.   This next crash will be epic.

holgerdanske's picture

There is only is only one solution.
Honest money.

tarsubil's picture

The issue I see is that the majority of people think that solution is crazy because most people don't have a fucking clue. I really would love to know how many people actually have a clue out there. I would love to see a finance poll with real questions like:

What is inflation?

What is the cause of inflation?

What is the Federal Reserve?

What does the Federal Reserve do?

What is another name for today's American dollar?

What are Federal Reserve Notes backed by today?

What was the dollar backed by for the majority of American history?

For the vast majority of human history, what percentage of interest was considered to be usury?

How many American colonies had trouble with gold redemptions for their notes?

Why are gold and silver mentioned in the Constitution?

etc. etc.

zorba THE GREEK's picture

And silver and at much higher prices

CHoward's picture

Aaaaaah yep - sure does.  Don't that beat all!

The Duke of New York A No.1's picture

Can't wait for the LIVE FED JUNE meeting and that RATE HIKE!!!!

doggis's picture





2016 could see the SXXP trend down toward 200.

hcho3's picture

Our heroes will not let that happen. Central forces of the world will do whatever it takes.

They will fight and fight.

buzzsaw99's picture

this too, is bullish.

rosiescenario's picture

One big difference is that back then DB did not have its massive derivative exxposure....

Squid Viscous's picture

BAC looks concerning "too"

too big to fuck, and too big to fail... will we see $2 again?


fucking scum of the earth

harrybrown's picture

welcome to Zionist Bank fallout... landing on us all very soon.

Sound money is the only option or oblivion it is,
get zee gold & silver bitchez or die with all the other fiat addicts!

gezley's picture

Europe "looks concerning" to the Bank of America only because they don't want people gaping at the even bigger holes in American banks. So they try the usual hit job by diverting attention elsewhere. Would be funny if it weren't so fucking predictable at this stage.

sopko16's picture

What's the big deal? Buy at 225 or when MA24 is over 40. Sell now and just wait. Hahaha!  :p

leftcoastfool's picture

I feel like I've been riding the asymptote express for the last several years - rushing headlong towards a collapse but never actually getting there.  We're so close I feel like I could reach out and touch it!  When the Hell will this train hit a wall and put an end to this bullshit???

natronic's picture

I'm going to buy more Deutsche Bank!!!