Monday morning

+ Japan GDP contracted less than expected, boosting Asia markets.  Shanghai up >1%, HK up 3%
+ Swiss National Bank supposedly in talks to curb CHF gains.  The central bank is meeting Wed. CHF down this morning which is a risk on indicator
+ Google buying Motorola's mobile phone unit for 12.5 bn or 40/share in cash (65% premium)
+ Euro strengthening vs. USD this morning, could boost risk assets

- Germany opposes Eurobonds. Eyes on Sarkozy and Merkel meeting tomorrow

- Empire State Man. at 8:30 missed big: -7.72 vs. 0.0 expected.

I think we remain range bound today with an upside bias. I am still looking to trade the commodity space which I think got unfairly beaten down in the past couple weeks on forced liquidations.  Holding off on financials for now although I think they are cheap.

SPX levels: 1172 support, 1190 resistance.  If we break 1172, will look to build longs @ 1150-1152.  Next level of resistance above 1190 is 1200.