According to Barrons, Barclays Vishal Shah came out with a warning today saying trouble in the solar sector is far from over and cut the sector to Neutral.  Solar stocks are under pressure today on the warning, but the report out of LDK Solar last night isn’t helping either.  Both of the solar ETFs (tickers TAN, KWT) are breaking back below their 50 day moving averages with heavy volume today.

The warning was issued due to an intensifying of pricing pressures due to oversupply and due to the supply/demand outlook getting worse, not better.  Said Shah, “We expect U.S. demand to pick-up at a slower pace relative to prior expectations and see potential downside risk to inflated demand expectations in China.”

He also raised concerns about the future of feed-in tariffs in Germany, cautioning that current levels may not be sustainable due to module price declines and attractive project economics which may lead to a reconsideration of generous FIT levels.

For more details and quotes on this, check out the post over at Barrons