I tweeted over the weekend that if S&P futures failed to rally sharply (eg being up 20+ handles) that the bulls had better watch out. Unfortunately for Mr. Market, pre-market has faded the gains of last night in futures and are pointing to some piddling gains when the market opens. The Spain bank rescue known as the “Spailout” is seen as just buying a little extra time.
What’s really bad is that Spanish 10 year yields are rising and back above 6.5%. Ouch! Italian yields are also rising. Double ouch – like getting a seed stuck under dentures (if you ... please read more here: