This morning, all of the leading European financial institutions are selling off sharply to start the day. The European banking crisis seems to be getting worse by the minute. Traders can easily see stocks such as National Bank of Greece (NYSE:NBG), Deutsche Bank AG (NYSE:DB), Credit Suisse Group (NYSE:CS), UBS AG (NYSE:UBS), and countless other financial institutions are trading lower by more than 3.00 percent or more. This is not a sign of a healthy financial system, it is a sign of a coming default in the European Union.
The stock market has already priced in a Greek default despite all of the news out of Europe last week saying that would not happen. Investors are just wondering who will be next country to default after Greece. Will it be Italy, Spain, Portugal, or perhaps even France. The French banks have been sold off sharply over the past month, the French financial institutions do not seem any better then Greece at the moment.
There will certainly be more news out of Europe this week telling the world that everything will be fine in the European Union. Traders and investors should not listen to the noise from the talking heads, traders should listen to the price action on the charts. Right now, the charts are telling us there is a likely default in the European Union.