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European stocks fell sharply across the board Tuesday. In Germany and France, markets have been very quiet over the last few months, steadily moving higher in small clips on a daily basis. That came to an end Tuesday with big moves lower in both countries. Germany is still well above its 50-day moving average and its uptrend remains intact, but the same can no longer be said for France. As shown in the second chart below, the French CAC-40 broke hard through its 50-day today, which also represented the bottom of its multi-month uptrend channel.

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Along with France, the UK (FTSE 100) and Italy (FTSE MIB) also saw significant breaks below their 50-days Tuesday. For Italy's major index, the 50-day had acted as key support going back to August, but that's no longer the case after the wash out we saw Tuesday.

The fall in Europe sent US stocks lower Tuesday morning, and it was the stocks with heavy exposure to Europe that got hit the hardest. Keep an eye on this trend in the days ahead.

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Source: European Stocks Suffer A Setback