This wasn't the way the market was supposed to react to news of Spain's bailout request. The idea last week was that taking concrete steps to address the situation would be a positive, a start toward crafting an aggressive solution.
Instead, all that $125 billion figure bought was a few hours of enthusiasm before the realization set in that another credit line might not be the way out of this mess.
When the closing bell sounded, the Dow Jones Industrial Average, which was coming off its best weekly performance on both a point and percentage basis, had swung more than 250 points from peak to trough, and the blue-chip index's year-to-date appreciation was back under 2%. The VIX showed rising consternation as well, leaping 11% on Monday to finish at 23.56.One thing that last week's rally did seem to accomplish was setting a near-term low for stocks after May's debacle, and that should provide some comfort for the bulls, according to Gary Thayer, chief macro strategist at Wells Fargo. "
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