Many of you may be asking yourself, “what’s changed since last week with the EU bailout?” One would think there would surely be some sort of news or development concerning the exact structure of this plan, rumored to be a sovereign debt backstop of $1 trillion USD. Is there surely some plan moving forward?

***PLEASE FEEL FREE TO CHECK OUT THE BRAND NEW GLOBAL ECONOMIC CALENDAR BY CLICKING “ECONOMIC CALENDAR” IN THE NAV BAR***

Looking to the week ahead, many questions regarding the strength of Korea’s economy from the stance of consumers, businesses, and international investors will become much clearer through the aforementioned econ data. However, the KOSPI Korean equity index, the Korean Won, and yields on Korean debt will continue to be heavily influenced by geopolitical factors surrounding the conflict with North Korea and developments in global financial markets, resulting from sovereign default risks in Europe.

While history may paint our stance with the heavy brush of criticism, we’re going on the record to call increased volatillity and a lower close on the S&P 500 by week’s end. We feel it is our duty to yell from the rooftops just how treacherous the current developments in world markets have become. While we won’t stamp corny metaphors to the ailing sovereign debt markets, wasting your time with visions of ships and storms, we do pray that readers appreciate the urgency of this week’s Weekly Spectrum.

In plain English and within the scope of Econ 101, the infamous Nouriel Roubini weighs in on the recently announced $1 Trillion EU debt purchase backstop; discounting its potential for success and identifying roadblocks that may lead to failure.

Specifically, Roubini states that despite the “money on the table”, the following three headwinds oppose a return of normalcy in the European Union’s debt markets.

Last week was a ROUT. There’s no other way to put it. While we suspect this week will start off with some trading traction, it may not end looking much better. What is certain, is that geopolitical uncertainties in Europe look to be trumping economic data in a slow week for U.S. macro indicators. This week’s Weekly Spectrum is then more focused on the geopolitical risks surrounding the EU TARP style debt purchase program nearly $1 Trillion large, power transitions in the UK and Germany, and a few economic reports due out later in the week in the U.S.

Crude Oil has reluctantly played follow the leader with U.S. equities for much of the past 12 months. More recently, fundamentals took a back seat to short term speculation as risk takers drove the price of hot button commodities up with stocks. Crude has been in a holding range between $80 and $87/barrel for all of March and April, but in the past two trading sessions NYMEX WTI crude plunged directly from the top to the bottom of that range.

With the Euro diving, Greek Bonds selling off, CDS spreads widening, and now members of the EU fearing contagion risks are growing, the importance of budget cuts in Greece coming to pass has come to center stage of the European debacle.

What will happen if the citizens of Greece defy these cuts and drag out the process until market speculators have driven the continent and it’s mutual currency to it’s breaking point?

Greece, Greece, Greece… Is that Papa guy ever going to get his act together and accept a check from the EU? is it 45 billion or 100 billion Euros now? What’s the deal with these riots in Athens?

Chances are you have answers to these questions, and a few extra cents to contribute to the issue. Frankly, that’s what the comment box is for, and we won’t waste time on the issue beyond these next few words.

Most will probably tell you that ABACUS was a fancy deceptive ploy by Goldmand Sachs (GS) to cheat other banks out of their money and make bets against the U.S. housing market, which would ultimately lead to the recession.

Call us what you will, but we’re going to take a different stance on the issue, first explaining what ABACUS really is and then placing it in the context of financial markets.

Elliot Wave International chief market analyst Steve Hochberg applies Elliot Wave market timing theory to the current market dynamics. Indicators of sentiment including the S&P 500 put/call ratio, insider trading, and a crashing CBOE Volatility Index are cited as evidence for an eminent sell-off in riskier assets globally.

Click below to see Steve make his case on CNBC’s Squawk Box…