Ahead of the open, (22-05)

Although, the market was relatively flat premarket and open, a steady ladder climb of 20 handles ensued with small caps (R2K) leading the way with many single stocks in the group up 3-5%.  Despite the gains, the rally didn’t seem that strong in scope to suggest anything other than an oversold bounce. 

  

The morning update lead of possible game changing chatter caught on as the day progressed, culminating in afternoon FT articles on some of the subjects keeping the rally into the close.  Although, the chances of any intervention is small before the Greek elections, the chatter is essential to keep a floor (SP 1292 ) to the market.  Unfortunately, this all relates to political maneuvering with no one wanting to tip its hand and/or destroy months of work.  It’s as messy as it gets with uncertainty remaining till elections.

 

Away from Europe, China Wen remarks on pro-growth helped some as well.  Still, at this point SP 1240 looks to be a barrier on any bounce as noted last week.