The EU has set a deadline for a Cyprus bailout. Of course, deadlines were made to be broken in this sort of negotiating. And you thought it was strange that Greece, a small part of Europe’s economic output was pretty small to be moving markets around the world! How small is Cyprus? Small enough to bully and small enough not to have much effect on the rest of Europe, which is why the former is possible.
I wrote yesterday that stocks could fall farther. You can pretty much tell most days what the U.S. will do when it opens by seeing how Europe and the Far East did earlier in the day. Of course, Japan is setting its own course with money printing driving their market the way it did in 2009-10 in the States.