S/M press conference

Initial reaction: Euro spiked testing yesterday's highs.

Proposal for a new Euro Zone Economic Counsel and a Euro Zone President to increase economic coordination.  Also proposed a new tax on all financial transactions starting in Sept.  Not surprisingly, Eurobond solution absent from talks. 









After spiking Euro is now settling down in the 1.44-1.4450 range:

I'll become much more bullish if we break resistance of 1.4450.  Until then I remain cautious and sit tight.  An impressive rally though, especially after weak GDP numbers, so I'm expecting a break out sooner rather than later.