In the short holiday week the markets have already moved more than they typically do in a complete week. The S&P 500 (SPY  ) has sold off over 1% so far this week thanks to news out of Italy that hurt the large banks.

The banking sector (XLF  ) whas also been a main focus thanks to the Italy news. In addition to that, JP Morgan (JPM  ) as well as Morgan Stanley (MS  ) announced some weakness at their firms which further fueled the selloff. THe XLF remains in focus though as it has now closed below the 200 day moving average once again. This is only the third time in 8 months that it has done this. This time seems a little more impressive thanks to the higher than average volume.

Oil (USO  ) also has continued it's selloff this week as the Saudi's and Russians are hinting of more oil output. While this seems like merely jawboning at the moment, it has weighed on the price of oil. The USO has sold off another 1.3% so far this week, bringing it all the way back to the longer term trendline in play.

Bonds (TLT  ) shot higher on the global concerns as investors flew back to the safety of the government backed notes. The TLT pushed to new, three month highs, just under the 200 day moving average. For the week the TLT is higher by over 2%.

Finally, volatility (VXX  ) rockets it's way back into the headlines with a 12.5% move on Tuesday alone. The VXX has been sort of out of favor lately with a calming market. As the summer, low volume markets started kicking off, many thought that volatility would wain, but after Tuesday it's clear that the markets aren't done yet.