Morning trading: money is fleeing the euro and going into the U.S. dollar, as well as gold. Gold (priced in both euros and dollars) is up and near new highs.
There's obviously serious selling pressure in Europe that is spilling into the U.S. market; remember U.S. stocks rallied on Friday once the European markets closed at 11:30am ET.
The problem is, the notable rally we had in the last half hour on Friday likely blew out the last remaining shorts left; with fewer shorts left to cover it will be harder to bounce much today unless some miracle comes out of Europe. Italy has changed the game.
Bank earnings begin this Thursday with JPMorgan , then Citigroup on Friday. It will likely be a very mixed picture. Early thoughts on the banks: