Well, at least we have moved past Greece. Now we need to bring in the IMF and China.
Trading volume is light today (Monday), for good reason: this can still go either way. We are not really falling, just moving sideways.
We need a credible plan to ring-fence Italy and Spain. If we get that, markets will move up and stocks will start to trade on fundamentals.
The big worry: Italian debt is starting to trade at junk bond levels. Italian 10-year yields passed 6.6 percent, again at new highs. The Vanguard High Yield Corporate Fund, one of the largest junk bond funds, now yields 7.1 percent. (Check sovereign credit default swaps (CDSs) here .)