The yield on the 10-year Italian bond has spiked well above 7%, which was seen as the tipping point for Greece and Portugal forcing the EU to bail them out. The key difference is that Italy, Europe's third largest economy, is simply too large to bail-out. The ECB (European Central Bank) has been furiously buying Italian bonds, but this has not stopped prices from plummeting.
Financial markets across the globe have been hit hard, with most major exchanges down well over 2%. We are going to open down well over 200 points on the Dow. This will be a key test of the support levels on the market. If we can hold today at or above support, it should give technical traders some confidence to buy the market higher, hopefully pushing us closer to the 200-day moving average.