The reaction of the market to Merkel of Germany and Sarkozy of France is one of great contempt for their continued approach towards the European sovereign debt crisis. For most of the session, the bulls have fought hard off of this morning’s lows. Now, though, we have violated this morning’s opening gap down. We still have a few hours to go, but the bulls were looking for a benign day of consolidation after the recent rally off the crash lows.
One thing to note, in terms of this afternoon’s sharp move lower, is that we have now filled the gap left from Monday’s sharp move higher on the SPY. If the bulls are going to maintain the lion’s share of the gains from this recent rally, they likely need to hold this area.
_____________________
at least a couple of times per day, I wind up saddened by the europeans, by the fact that some among the repubs seem willing to harm the country just to gain the oval office, and more.