Open

Yesterday  showed you some daily resistance levels and the SPY in particular that should be broke, as I said earlier in the week, the shorts were squeezed, not it's the bull's turn. It looks like we'll get an opening above the SPY resistance level which should bring in buyers courtesy of the ADP report coming in much stronger then expected, it more then doubled consensus of 70k jobs.

Initial clams were 418k, just below consensus of 420k. Continuing clams just edged out consensus as well for a small beat, so the ADP report should move the market.

In a not so surprising move, the ECB has fired back at the downgrade of Portugal yesterday which put their bonds in junk status and unacceptable as ECB collateral. The ECD changed its rules allowing Portuguese bonds to be accepted as collateral despite their junk status. This effectively nullifies Moody's downgrade yesterday that would have otherwise thrown the bailout mechanism in to chaos.