Investors navel-gazing at the pop in European equities today shouldn't get too excited.
Here's analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers earlier today:
"Big mean reversion move higher this morning for European Equities (which got hammered again last week); Italian stocks leading +1.99% on the MIB Index (after falling another -3.8% last week to -19% YTD); that’s helping US Equity futures, but #EuropeSlowing is not (yet) the latest bull case for US stocks."
Take a look at the chart below of select European equity markets and the respective drawdowns from the 52-week highs in the highlighted column.
Bottom Line: Italian and Spanish equities are still crashing...
Click image to enlarge.