The danger of a death cross in the S&P500 has passed for now. Time to get back in. There are still risks. Greece is the biggest but I think that's pretty much priced in. The agreement though does make defaults by Italy and Spain less likely, and the survival of the euro more likely. I'd still like to see a lower bank rate from the ECB, but maybe we might get that too. Europe is after all in recession. Even the ECB must see that.
Note how last night's close in the S&P is above the previous high of 10 days ago, and how recent lows have been successively higher. Note a similar pattern from the Euro 500 -- only from a lower base. How long this rally will last, I don't know. But the risks of being out of the market are now greater than the risks of being in. At least, that's what I think.
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