The weakness of the sector that encompasses the banks of the Old Continent is maximum. In fact, since the historical maximums that it marked in 2007, it has sunk 90%.
Banks, not even in paint. From the historical highs that this sector marked in 2007, the index that encompasses all European banks accumulates a 90% drop. But it is that the weakness of this sector, after the ‘crash’ experienced since the end of February, is such that to recover February levels, the index should increase by 85%. No more no less. This does not mean that we continue to believe that the rebound has to continue, since within the great bearish cycles prices rebound strongly and then continue to fall. In fact, it would not be at all strange for the current reaction phase to lead to the resistance zone of 76-77 points: the previous historical lows, now the first real resistance zone. But we must always bear in mind that we are talking about rebounds within a corrective movement of a higher order.
EURO STOXX Banks (SX7E) daily chart