Here's what the Spanish bailout looked like in the bond markets. The opposite reaction that one would expect. Yield spreads went higher. This is a preview of what will happen someday soon when the latest Fed-induced stimulus will cause the equity markets to tank.
S&P futures exploded on this news last night. In fact, you could see it in the late day ramp up and in the 15 minute post-market on Friday afternoon. Now futures are in the middle of this range, the high of which is 1342. I don't know if we'll test the equivalent of this level on the S&P cash today, but I'll bet we do at some point.
Today rather, the number is likely 1334.93. There was lower volume on Friday than any day last week, and A/Ds were weaker too. While I think we see higher prices, there could be a sizable correction on the gains since the 1266.74 lows at any time.
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