Quick look at the technicals

S&P comments on 5 key risks for European banking sector–Weakening sovereign creditworthiness: Any further weakening of sovereign creditworthiness would likely directly and indirectly affect bank ratings and would most likely prompt further negative rating actions. Conversely, restoring confidence and a stabilization of sovereign ratings could ease pressure on bank ratings. – Economic recession: Banks operating in more stable economies, with strong capital, contained funding and liquidity mismatches, diversified risk positions, and client-centric business models are in a better position to maintain creditworthiness. Conversely, the credit quality of banks exposed to greater economic risk or that of wholesale-oriented institutions whose business operations require high leverage, mismatched funding and liquidity, and continuous access to market funding is more likely to deteriorate.

- Funding constraints: Extraordinary support is helping to stabilize the creditworthiness of European banks, but the measures by central banks are also evidence of structural weaknesses in large parts of the banking industry. – Transition to more-stringent regulatory requirements: We continue to believe that the reforms are likely to extend the scope of the balance sheet strengthening measures already initiated by many banks, and potentially trigger fundamental changes in business models and product pricing. – The changing nature of government support for banks: We believe that it will be difficult for governments to remove support in the short term until

30 year bond is pulling back and we will again key the closing pivot pt of 140-24 area

FVM hit its key resistance area around 123-14.5 and pulling back slightly with 123-00 as initial target

7 year yield holding its short term .786 support

30 year versus SP tested its 200 day moving average yesterday as we look for a pause at this level

TY/SP also hit a key resistance yesterday (.382 retrace)

SPM emini broke its .382 of the year yesterday but is holding above it today

We now will key the 50 day moving average which has been a pivot pt in recent months

SPX held its short term .786 support yesterday

And we will key its 50 day moving average at 1372 area

EURUSD has 1.3169 as first key resistance

EURJPY is back above its 200 day average today

US$ Index – we will move our pivot pt support down a bit to 79.41 area