EUFN: European financials are in danger here

I think we can get a retracement in the financial sector, and Europe is in worse shape than the US in general. It wouldn't surprise me to have some negative news pop out, surrounding Italy's referendum, Deutsche Bank, Italian Banks, UK banks, Brexit, etc. Quite a few potential catalysts for volatility, so, if we see this ETF break the linear regression channel support, we will probably see a rapid selloff.

Keep your eyes open, it might be safer to stand aside, and book succesful long trades, or maybe even take a couple strategic shorts.

Good luck,

Ivan Labrie.

Trade closed manually:

You can see the channel never broke, and the Italian referendum wasn't bearish at all, despite the wall of worry.