The major stock indexes rolled over yesterday after rallying for about thirty minutes after the opening bell. This morning, the major stock indexes are declining again before the opening bell. Many traders and investors are looking at the U.S. Debt ceiling and realizing that there is really no debt reduction. This debt ceiling bill simply just slows the spending down around the turns and accelerated spending on the straight away. Oh well, that is politics. The S&P 500 Index e-mini futures (ES U1) are trading lower by 9.00 points to 1270.75 per contract. The June lows are now in range and could be tested very soon.
The European Union seems to be crumbling before our eyes. Spain and Italy are looking like the next two countries to need a bailout. Yields have been surging higher on the debt in these two nations. France is also coming under pressure this morning, yields are beginning to spike higher in France. It has long been believed by the media that France was a safe haven nation like Germany, however, that does not seem to be the case any longer. Traders should expect the problems in the Euro-zone to continue throughout the rest of the year.