For those of you who believed when Spain's banks were bailed out and Greece elected the right party, that we would see a sigh of relief from the markets forget about it. The worry continues and the stability of Europe continues to be theme the market is marching to. It does not matter that housing sales are at a 2 year high in the US. None of the positive economic news is enough to remove the problems that Europe is currently weighed down with.
So what track does that leave us on? A track of continued uncertainty which as we know the market does not digest very well. Spain and Italian yields are continuing to rise and that puts them on the hot seat next both are much bigger than Greece.
After last Thursdays drop some out there were saying that was enough, but that is not how it reacted today. The Dow dropped 138 points today and the S&P dropped 21. The continued selling pressure should continue through the end of the week and into, possibly next week.
There may be a temporary pause in selling this week but as Europe continues to cycle through its limited financial options and no dramatic action is taken all it will do is continue the certainty that the market will continue to drop.