Into the trading week, (June 11- )

The ‘hope’ rally that built in large part to speculation of Spainish acceptance of a bailout from EFSF came to fruition this weekend. The funds will come from the EFSF and be lent to Spain through the FROB (Fund for Orderly Bank Restructuring), which will channel them to Spanish financial institutions. This was noted early last week, “..a few proposals of assistance to Spain the sovereign (not its banks directly). The ES markets rallied at the open of ES markets (high as ~1340), but the true test will be to see if 1335 resistance can be taken out(hold) by the cash market end of day. Again, this is the area noted last time as a place profits might be cashed in. The chances are this event will not be a game changer in the big ‘European’ picture and fading will eventually occur as most of the positives were likely built in last week. New concerns will likely emerge and Spanish yields will be in focus as will Greek elections. The Spanish bailout will likely strengthen the hand of the anti- bailout Greek parties