Something or Nothing?

These changing years
They add to your confusion
Oh and you need to hear
The time that told the truth
--Level 42

Noteworthy market action today as the Euro was pounded for its biggest one day loss in some time. The stated reason was Italian election results that reportedly suggested to some that 'austerity' movements may be in jeapordy.

Not sure if that resonates with me but perhaps this is a signal that attention may be shifting back to the EU where nothing has been solved.

Meanwhile, Treasuries found a bid here with 10 yr yields declining big. Euro sold/Treasuries bought is reminiscent of the 'risk off' pattern common to the EU 'crisis' a yr or so back.

Whatever the driver, US stocks staged in a nasty reversal. After being up early, indexes flipped over by late morning and then sold all afternoon before closing on the lows. For the SPX the 50 day moving average is quickly approaching.

Tough reading much into one day's action. But the size of these intraday moves makes them stick out in light of recent history.

Time will tell whether this means something or nothing.

position in SPX