Who would have thought that the much anticipated European contagion would actually arrive. It was priced in right? Algos and correlation desks are flabbergasted that this is one situtation that the Fed apparently is helpless with. And if it does, it would only be dollar positive and stock market negative. Indeed, regarding the first, the dollar is now back to July 2009 levels.
Regarding the second, ES takes out the 1085 support to the downside with much conviction. We have previously discussed where next technical support levels are (hint: lower).
And in an attempt to stop "rampant speculation" JPM is out with a note seeking to stop the profit taking on what will certainly end very badly out in Europe:"[We] do not see contagion from the Euro area impacting [emerging market] sovereign funding strategies in a meaningful way" Zero Hedge in turn sees the contagion from the Euro area impacting JPM's business prospects in quite a few meaningful ways.