Greek's and Italian's sovereign debt default would collapse most European banks who bought their debts and American banks who sold the European banks Credit default Swaps. Banking collapse would cause countries to collapse as well, leading to a massive credit crunch that should be much more severe that the 2008 credit crunch.
Global stock markets sold off hard on Wednesday closing on a very negative momentum. Without any central banks buying tonight the sell-off should continue into Thursday.
Key level for NQ on Thursday is 2320
- Above 2320 implies NQ is going to pullback up to 2340 then 2355.
- Below 2320 the sell-off should continue down to 2300. If that does not stop the decline nest supports down are 2280 then 2270.
