As predicted Europe would likely be the excuse and Catalonia's vote last night which is a Spanish Region. The vote itself is a bit complicated, but lets just say the hardcore candidate who wanted a referendum vote seeking Catalonia's independence from Spain didn't do as well as the Ultra-hardcore group that wants to skip referendum and move straight to independence for Catalonia. None of this is good when we look at the bigger picture, but it really didn't matter what it was, they'd find something to grab on to so people can understand why the market is down, or at least why Wall Street wants them to think the market is down and we knew this last week.
There was some other bad news out of Spain regarding their budget overnight, which will never meet targets as austerity strips it of taxable income, like say the 8000 banking personnel and 1000 banks that are to be shut down before the EU gives them the first tranche of banking bailout money.-YES those are the terms.
There's also another Finance Ministers meeting today in Belgium to try to settle the Greek dilemma for the third time, I'm sure that will weigh on the market as even EU solutions are horrible at best.
Italian Consumer Confidence also fell to the lowest ever, but none of these are unique, we hear these sort of stories and stats all the time, sometimes the market seems to pay attention, sometimes it seems not to care at all, you ever wonder why?
Of course we'll have to see how the US Fiscal Cliff is spun over the coming days, but most importantly to me is watching underlying trade.
Here's ES which is about 6-7 points off Friday's 1:00 pm close.
Overnight ES trade was largely in line or confirmation of the move down, not a lot of volatility though. However on the 9:30 US open the volatility always seems to amp right up. We'll let the early a.m. trade burn off (lots of game playing there, especially after a long weekend) and see what things look like after the early games have stopped.
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