Investors this year are enjoying double digit returns. How easy it is to forget what happened in 2010, and 2011, starting May 1st. Problems from Europe rocked the summer time with double digit corrections.
This year seems no different. Instead of discussing my opinions here about why this will be part III of the European drama, lets examine what the technicals of these American and European banks are telling us.
Lets start with the American banks first.
Now the European banks.
The charts speak louder then words. Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) are both trading below there critical 50-DMA, and both European banks trading below there 50-DMA and 200-DMA.
All of the above banks are making lower highs, and lower lows. With the lower lows happening in the summer time. Why would this summer be any different then the past two? Same problems, same chart patterns here.
Buckle up for another volatile summer with the banks leading the markets into the European Debt Crisis Part III.