May 25, 2010, 7:00 am EDT — The Standard & Poor’s 500 index futures down 24.90 to 1044.20, as FEAR rules — FEAR that North Korea wants war, and FEAR that Euro Zone is disintegrating. World stock markets and the euro dropped Tuesday on fears Europe’s debt crisis will cause a prolonged slump in the region and weaken the outlook for global growth. … In Europe, Britain’s FTSE 100 fell 2.5 percent to 4,942.58, Germany’s DAX index dropped 2.5 percent to 5,661.09, and France’s CAC-40 sank 2.8 percent to 3,333.37. Markets in Spain and Italy, both carrying high debt levels, both fell more than 4 percent. … The euro slid to $1.2204 early Tuesday from $1.2398 in New York overnight and not far from the four-year low of $1.2146 it traded at last week. News of a bank failure in Spain and the prospect of more painful austerity measures across the region renewed investors’ worries about growth in Europe and its impact on major trading partners like the U.S., Japan and China. … Indeed, the next few days will be important for market sentiment — whether investors believe the European Union’s $1 trillion rescue package for eurozone countries can avoid a sharp fall in the euro and protect countries from bankruptcy. Meanwhile, the euro will weaken further and create more pressure of current value, not only in Europe, but worldwide. The major question remains — Are assets values too high, caused by governmental stimuli, not true market forces? With U.S. 10 trillion addition to national debt, free money policies and a range of global initiatives has created an asset bubble. … In Asia, stock indexes were hit hard: Japan’s Nikkei 225 stock average shed 3.1 percent to 9,459.89 as the yen’s strength against the common European currency hammered exporters. … Crude oil for July delivery slumped $2.77 cents to $67.44 a barrel on the New York Mercantile Exchange, as the dollar down to 89.72 yen from 90.22 yen late Monday. … — Maintain the S&P 500 index support at 1107.50 and resistance at 1153.93. Step back and remain defensive.