Well we finally got some serious action from a Euro summit. Clearly Spain and Italy ganged up on Merkel and bullied her into a concession. Using the ESM to directly bailout Spanish banks is a change in policy. Will it lead to a deal for Ireland, who knows? Where does the money come from to fund the ESM? These are the questions we need answered to get some clarity.

In the meantime we have set some highs,  1360 on the S&P and 1.2690 on the Euro

We have stepped back from the abyss so the market should be well supported over the next few sessions.

1.2600/25 on the Euro should provide some support and 1350 on the S&P. We really need some price action from the market to see which way they take this. Go with the flow for the time being. The macro view will emerge.