The markets opened nicely higher only to get slammed once again. Last week the markets saw their largest decline of 2012. The down cycle called by Chief Market Strategists at InTheMoneyStocks is fully in play. European worries continue to increase and technology has seen a sharp pull back from its recent highs.
Spanish yields surged above 6% on the 10 year overnight. This continues to show Europe will need to bailout yet another nation. After Spain, Italy and Portugal are sure to follow. The U.S. market has largely ignored the problems in Europe in recent months. However, these problems are now getting too dramatic to ignore.
Technology has been crushed in the last few trading sessions. Google Inc (NASDAQ:GOOG) reported earnings last Thursday evening. Since then, the stock has fallen from over $650 to a low today of $601.66. In addition, the strongest technology stock has collapsed sharply. Apple Inc. (NASDAQ:AAPL) has been the biggest hyped stock in recent months but has lost its shine. The stock topped out last week at a 52 week, all time high of $644, hitting a low today of $582.30.
This week the markets have a lot to deal with. Not only is Europe erupting once again but major earnings will be reported. In addition, it is options expiration which usually creates some wild swings in the market.