A flat market week concluded with noise over the situation in Greece. One way to mute the noise is to watch the yields in Italy and Spain as noted for weeks. It was clear the noise was nothing more than fear mongering for now as those ‘contagion’ yields were up 10-12pb signalling calmness. At the end, it was nothing but an excuse to take some profits for some, while for others it was a reason to buy yet another dip.
Heading into the week, the big picture hasn’t changed. The premise outlined before Friday’s action remains fully in tact with Greece just an added potential 'resistance mark' on the high bar set market.