Earlier this week we wrote about the European Indices Fading.

Euro Stoxx futures fell hard today and continues the fall in US hours. The Turkish situation is dragging the banks lower and spreads risk off sentiment to other sectors as well. Erdogan is asking citizens of Turkey to look for cash and gold under the pillows and convert to liras. It’s actually hard to make up stuff like this.

Biggest bank exposure is found among the Spanish banks (80 billion USD), followed by French banks (35 billion USD).

First big support for Euro Stoxx 50 is at 3400. Should we fall below this level, next support level is found at 3370. Note the brutal move below the 200 day average today.

European banks got hit hard today. The biggest loser was BBVA, -5,2%. Big break down.

Euro Stoxx 50 volatility index, V2X, popped big today. Expect this to go up more in the short term.

Maybe Turkey’s local problems start spilling over to even the US markets? SPX is trading at day lows. Tops are usually complex creatures and if this proves to be a top, it surely will look beautiful as the market turns perfectly on highs we saw back in January.

Source: charts by Bloomberg