14 JUN 2011, Thursday (AM)

• Greece was the word.  Now Italy is in the default fray.  The Eurozone is cracking and will probably break sometime in the next 12 months seeing a couple of countries leaving the euro.
• Heck...even US debt has been downgraded by ratings agencies in China and Germany.  And our very own Moodys ratings agency has put our debt on "credit review" (of course, Moody's rated mortgage backed securities as AAA...ha, ha, ha).  And, now Standard and Poors does the same.  How many Americans are aware of that???
• Global Debt Clock here...see how nations compare.
• This is making for some very wild moves in the after hours markets.  Repeated abrupt moves in both directions leaving little edge.  
• Also, US debt ceiling discussions are leading to a lot of uncertainty and markets hate uncertainty as is being demonstrated.  Not a good time for big bets until some clarity.
• Markets sitting on 50 & 90 MA's past couple of days...right in the middle of the broad sideways range for since the beginning of the year.  
• It's tough to see any direction here.  If you look at fundamentals, down would seem to be correct.  However, that hasn't worked for the past few years due to QE1 & QE2 (which is sort of over).  Which leaves you with technicals which aren't bad just testing nerves.  I don't like price beneath the 90MA and will stick with that.  The most recent move up was fast and furious.  Is this pullback the breather it needs to head back up?  We'll see...in time.
• Below...from zerohedge.com, interesting comparison between 2007 top and now...