European banks - reality kicking in

European banks - group think

The SX7E is falling hard today again, breaking the 50 day moving average for the first time since mid October. The first part of the "reality check" phase has kicked in hard, but most forget this is a longer term mean reverting asset, and when you get caught wrong you can get stuck for literally ages. Note the 100 day (blue) and the 200 day (green) for some perspective.