Europe's, and France's Woes

I have recently mentioned how the DAX, the leading performer in Europe this year, looks poised to fall further. The index recently fell below its 50day moving average and looks ready to make a run at its 200day moving average near 6200 in the not so distant future. And taking a look at some other major indices in the region, I would say the Germans won't be alone in their misery. Actually France's CAC looks worse off in that it is already trading below its 200day moving average and could be close to a continuation lower.

200day moving averages are a big deal...you can mess with the gods, but don't mess with the 200day moving average! Its not an expression I've heard used by technical analysts, but maybe it should be.

Anyway, getting back to business, below is a chart of the CAC. It is easy to see what happened the last time the index breached its 200day moving average to the downside in 2011. I am not implying the same or similar move with happen again but all I know is if I owned any French stocks (retailers, energy, auto manufactures, whatever) I would be looking for the exits. But I guess as long as they have delicious coffee, wine, and joie de vivre who cares about Francois' college fund - c'est la vie.