Some stabilization post bloodbath will likely continue into Remembrance /Veterans day with US bond markets closed/ little eco’ data (Mich. Confidence#). Some positive developments today and possibly over weekend in respect to Italy, but it seems it may too late to reverse direction considering SP~1275 was a stop sign this trading week. It’s also possibly late b/c eyes have moved on to France, it’s yields and spread vs. Bunds. Add the high possibility stabilization in the Eurozone is usually short lived and downtrend started last week may resume next week.
Not much conviction to lay out exposure on either side (longs or shorts) between 1275- 1230/1220, expectation is for November chop trade until these levels penetrated.