Well I was wrong that we cannot continue to rally on the same news.  Today we seem to be happy that Slovakia will approve expanding the ESFS.  Even as yesterday we did not sell off on the threat they would not.  So all news is good news again.

  • Slovakian leaders are meeting again to vote on the expansion of the European Financial Stability Facility (EFSF), after a party in the ruling coalition failed to back the plans in yesterday's vote. The government lost its confidence vote and the President is expected to  appoint an interim cabinet, meanwhile Slovakia is expected to approve the expansion of the EFSF in its second vote.

Just as everyone had their eyes on S&P 1120 for months on the low end, now everyone has eyes on 1225 on the high end.  My only worry is so many people are looking at it, it seems far too obvious as a resistance area.

As each day passes, we will soon reach an overbought reading - even as just over a week ago we were massively oversold.  At current pace by Thursday or Friday we seem apt for selling.  But in general this market just remains one big macro trade - risk on, risk off.