The Italian election will be a big story early in the year

Three of Italy's biggest newspapers reported that President Sergio Mattarella will dissolve parliament this month and set a March 4 election date.

The Italy MIB index is down 1% on the reports while Italian 10-year yields are up 6.5 bps to 1.77%.

Here is the MIB, which looks like some kind of head-and-shoulders pattern could be setting up.