Europe Recovers After Early Sell-Off, U.S. Futures Higher

Citigroup analysts predict the market may correct by 20% due to the fear of a collapse of the euro and contagion from Greece's bailout. The call may be premature.

Overnight, Asian markets sold off sharply. following the U.S. markets down. The DJIA closed off 3.1% to 10,365 after a sickening drop of almost 1,000 points just after 2.30 PM. Tokyo fell 3.1% but Hong Kong held its own and was off only a little over 1% to 19,920.

Europe may be the wall that braces against the sell-off. At 4:45 this morning, after sharp drops at the open in which the major indices in the region were off more than 2%, London was nearly back to even, off only 0.17%. Frankfurt has also moved off its lows to trade down only 0.7% at 5,861.

In the meantime, futures for U.S. exchanges were moving higher. Nasdaq 100 futures were up 8 at 1,984.50, DJIA futures were up 48 at 10,505 points and S&P 500 futures were up 5.80 at 1,128.20.