Broken markets - it ain't over

European banks - from star to dog

The SX7E remains an extreme consensus long. We are trading below the most recent puke lows, putting in a big ugly candle today (again). Note we are below the 100 day, but the 200 day remains way lower. Our logic from March 1 (here) that this sector was due for a reality check played out very well, but looks like reality is even worse than we thought initially...Second chart shows the SX7E vs the German 10 year.