The market’s prospects are looking up this morning as French President Nicolos Sarkozy and German Chancellor Angela Merkel are set to meet and discuss further action regarding shoring up confidence in the Euro. This important meet and greet is just a warm up for Friday’s big Euro Summit meeting that aims to have a permanent plan in place to stop the bond vigilantes from aggressively going after the weaker Southern European countries.
A strong stock market today also has the potential for a milestone in the S&P 500. The last time we crossed over the 200 day moving average was back in October. This is significant because many institutions and traders use this level as an indication of continued strength in the markets. Since this level has served as resistance for quite a while now, it will be worth watching to see if we can finally break out of it to the upside.
Eric Marvin, CFP®, CRPC®
JPT120511-1987
