So I don't have much to offer but here's the quick and dirty:
Overnight someone decided that the collapse of the Italian government may not be good thing (remember that was the rationale for the end of the day rally yesterday) and Italy is rumored to be at a point of no return.
Okay, Greece, Ireland, Iceland, etc. These were troublesome but in the global market they played a very minor role. Italy on the other hand represents the world 3rd largest bond market and the ramifications are very broad if things go sour in Italy.
Rumors are now floating of an emergency ECB meeting to stop the free fall of the Euro. Stop me if you've heard this one before :)
I'll try to provide a more comprehensive update later today.