Market Thought... euro'd

Friday's employment situation was not that good, and I was surprised to see the market react with such strength. (The brightest spot was the average weekly earnings continues to rise.)  It was not strong enough to kick the 10yr out of its resistance, which capped the market near its monthly resistance.

  

Many pundits suggested the fuel was from money flows from the 1st of the month. Whether this was true or not, it seemed like the market was going to climb the wall of worry. That is until the weekend.

Over the weekend the markets got "Berlusconi-ed". (I'd like to think the act of being "Berlusconi-ed" is to undo a peaceful multi-year Pan-Euro transition from unproductive-to-productive societies.)

1. In a bid to get re-elected, Berlusconi reverted back to the BS politics and fiscally damaging politics that brought Europe down, by vowed to undo a property tax.

2. Corruption allegation in Spain, threatening to oust the party driving the reform.

Today, the markets reacted.

If the SP500 starts to break its 14 SMA, factoring in the new found EU uneasiness (not a complete uncertainty, or not nearly as bad as the sentiment was prior to ECB action), and weaker US jobs number, the SP500 could test 1450-1460.