footing zone..

A opening slide down into the now infamous April gap was all she wrote.  In all, that’s about it as the SPX stayed inside/range bound within the gap all day.  Yesterday’s hope coming into the trading day,….” is a countertrend rally of the Eur/USD starts at ~1.39 where a base may exist coinciding with a test of the gap in equities to give recovery a chance.” ..Well, both points were hit (~1.39euro & equity gap), so it's on the table. Due to basing, risk assets should bounce some after exhaustive selling last few days.

The big difference as far as Europe goes for the markets is the fact the bigger economies (Spain, Italy) are in the news, not the smaller peripherals we’re used to dealing with.  Market might be overacting as CDS spreads of those 2 countries are a ways off last year’s highs to signal any immediate crisis.  Due to this and the recent big sell off in Euro, some footing  might be found at these levels for most risk markets.