The markets are obviously under pressure due to the continuing sovereign debt problems in Europe. The fact that the Europeans are having these problems should come as no surprise to anyone. A big portion of the current phase of the European sovereign debt crisis is an unwillingness of voters on both sides of the table to go along with the bailout program. In our June Market Commentary Blog I warned our readers that this could potentially be a big problem.
I think there is a serious possibility that the voters in these debtor countries will be more than willing to drive their own bus off the cliff with the petal to metal, full speed ahead. I am not sure there is much that we, or anyone else outside of these countries can do to prevent this.
A Few Thoughts Before the Open:
The pre-open futures are sharply lower for all the major market indices. It looks like we are in for another day to the downside here in the United States. I think today is a good time to take a look at the support levels on the various indices I have writing about recently. The Dow Jones Industrial Average is the most significant market index in the United States, it is the leader to which all other indices march.