Indeed the ECB says they have been buying Irish and Portuguese bonds, but the market doesnt seem to be too content with this after all.

  • The European Central Bank intervened in markets buying Portuguese and Irish bonds while its president, Jean-Claude Trichet, told journalists the bank's bond-buying program was not dormant.
  • Traders quoted by Reuters said the central bank was buying the bonds in the secondary market just after Trichet said, answering a question about its SMP program: I would not be surprised if by the end of this teleconference you will see something on the market.
  • Trichet refused to comment when being challenged as to why the ECB bought only Portuguese and Irish bonds, not Italian ones.

Thus far the S&P 500 has held yesterday's lows, but with relatively meh data on the economic front it is surprising to see such a dramatic drop.  Time to start a new QE rumor? One a day cannot hurt.  For now Europe dominates.