Spain and Italy...European Assets or Liabilities?

Spain and Italy have their share of problems, which are reflected in these Daily charts below. Both have recent "falling knife" formations. A break and hold below 3-year lows on the Spanish index would be very bearish and difficult to stop-gap a bear exodus. Whether or not the recent bullish Golden Cross on the Italian index will be sufficient incentive for the bulls to re-enter this market remains to be seen. As they stand now, neither one is supporting a bullish case for Europe.