The news has been terrible for the past two days as sovereign spreads are blowing out. Safer countries like Austria and France are seeing their spreads blow out as well. Despite all this the market is hanging in and is still within spitting distance of recent highs.
The market clearly wants to go higher but there is a limit to what it can do with the news so negative. We are nearing the point where the ECB will have to choose between printing or letting the EU disintegrate. There are clearly no buyers for sovereign debt and the problem will not get better by wishing upon a star. I believe they will choose to print but call it something else. Have a good night.