Well in the end the conservatives won. Interesting outcome, everybody want’s the Euro but not the austerity. Will Greece get a new bailout deal? I doudt it. However if they form a Government it takes them off the headlines for some time. Step up Spain and Italy.
Markets certainly put in some rally Euro to 1.2745 and the S&P to 1348
Where we go from here will be hard to predict. I suspect we get a few days of sideways to up but really we need some price action to see.
In the end the Euro problem still exists, unsolved and we will turn bearish again. In the meantime a jobbing mode is probably best.