Futures Up

There was a huge amount of volatility in the European market, and we have a low of 1176.75 in the overnight session and a high of 1189.75.  A 13 point swing in overnight trade is pretty big, and there seems to be a lot of nervousness about how the Greek problem will be resolved.  The contagion is rolling over to Portugal and Spain.  The futures are up big and the market seems to smell some kind of positive news out of Europe.  That's what it feels like.

The US markets were pretty much oblivious till the fear hit the market all of a sudden.  That is what happens in these overbought, overbullish sentiment markets.  You get slow creeping upmoves and violent fast downmoves.  I don't think we'll go right back up like last week.  We'll probably churn at these lower levels or grind lower in the coming days.  I'm going to play it carefully, but I think 1170 is good support and 1194-1195 is strong resistance.