Egan Jones, Spain and the Euro

Arbitrage seems to be the name of the game today, at least intraday.

Egan-Jones cut Spain to BB- from BB+, which is effectively JUNK status and EG seems to be ahead of the rest of the ratings agencies.

Here's the EUR/USD and market effect...

 EUR/USD

 Longer term EUR/USD

Clearly the Euro lost ground overnight and the market even being up would not be normal, I believe it's evidence of Wall Street's intensions, but there certainly has to be some market impact from the Euro lower-it's not in a red zone right now and I don't get to wound up about intraday or day to day trade, however you can see how it has effected the market today (the red square being the approximate time of the Egan Jones downgrade).

I think it's time to take a look at the Risk Asset Layout as well as a few other indications.