We all know by now that the Eurozone is facing big challenges. The conversation now moves to the contagion issue. How bad, how deep? Greece, Spain, Portugal, and Italy obviously have deep seeded issues. If the greatest nation on planet earth is on its heals, how can we expect a country like Spain, with 25% unemployment and a crashing real estate market rise above the challenge?
We’ll see how this plays out in coming weeks. Was it just a fantastic knee jerk reaction? Timing for the bears couldn’t have been better as the S&P was hanging around its own lofty level of 1100 when most of this news broke.
Non farm payrolls are released shortly and today will be huge from so many angles. Be careful today and turn CNBC off. The S&P looks like it will get a magnetic pull to the 200 DMA. World markets are getting hammered. Good luck today.