I woke up this morning to Jim Cramer smirking about the 'weekend surprise' that had the European Commission deciding to steal the insured deposits of Cyprus citizens to deal with their banking crisis. (Two weeks ago they specifically said they would not do this because it was against the EU constitution.) But then we all know what todays politicians think about constitutions!

     Cramer was also dismissing Gonzaga's chances in the NCAA tournament in favor of the latest hot team, Louisville but here's why I think Cyprus was a very important event for our stock market. (Despite the Dow starting out down 109 today and rallying back twice to positive territory.)

     1. There is a good chance the Cyprus parliament won't approve the deal. The banks there won't open until the deal is approved and the plan has been delayed today from Tuesday to Thursday.
Majority Cypriot Parties Refuse To Support Deposit Loss Law

     2. Asia, particularly Japan, China, and Hong Kong were down big last night with China turning it's intra-year trend down. Shanghai is imitating it's behavior in the 2007-2009 decline almost exactly. The world economy can't go up with China going down. (Eric Hadek)

     3. The 1st indications that a top is in is to neutralize the daily trends. This requires daily closes of:
          Dow: 14,411     S&P: 1540.50 (June)   NQM: 2784   With less than 20 min to go today we have:            14,451              1544.50                          2783     Everything is within easy range!
Close:          14, 453              1545.50                          2786.25

     4. If this deal goes through or not the Russians will likely take their $60 billion in deposits out of Cyprus. That will sink Cyprus and also further sink Greece since the banks in Cypress heavily bought
Greek bonds. (which will soon be worthless)

     5. People will start removing their deposits from banks in Italy and Spain because they know they can't trust the ECB from doing the same thing to them. That's why the biggest overnight losers in Europe were the banks of Italy, Spain, France and Germany. They are all on the hook for each other.

     6. Even though the US markets came back and filled their big 'gaps' today the Euro never did.