3 'Arguments' Moving Today's Markets

Europe ended at the lows for the day, but that doesn't mean the euro's volatility is over: keep a close eye on the euro/dollar: It is sitting right above the $1.30 range, where there is almost certainly sell stops posted.

What's going on? The most forceful arguments today are threefold:

1) the concept of the U.S. "decoupling" is simply wrong on anything but a short-term trading basis.

2) for Europe, Spain is a much bigger problem than Greece. Spain "is just too big to bailout from its own problems," one bearish trader wrote in.

That's not true, but certainly the costs would be enormous and would almost certainly involve some kind of restructuring. The IMF has already said there is no truth to the rumor that Spain is seeking any kind of bailout.

Spain is at a 9-month low, while France and the UK are at 2-month lows.

3) China, which is tightening its reserve requirements and trying to slow its property market, is certainly succeeding in popping it's own equity market. The Shanghai Index is at a 7 month low.

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