A Market Technician Looks at European Financials

If you could return to May 2012, would you invest your money in Europe or the United States? It may come as a surprise, but Europe is actually outpacing the S&P 500 with returns of 40% and 33% respectively. Headlines continue to beat the negative drum that ‘problems still loom in Europe;’ that may be true, but those problems also might be hiding the strong gains realized in those markets. The markets still look healthy from a technical perspective, and I’m particularly intrigued by the financial shares.