Talk of rescue fund for European banks and better polls in Greece have caused a strong rally overnight. Euro is into the 1.2600/20 area a break of here will lead to higher. S&P has stalled again at 1328 we need to break this area to target 1340

Market will be determined by these strong resistance points. Equity markets should open stronger and this may provide the imputus needed. We need further information regarding the rescue fund to determine whether this rally will be sustained.

The overall picture has not changed in fact the talk of a rescue for banks just emphasises how serious things are.

The market may get into bull mood today but the bear markets will return.