Overnight-opening

Since the UK markets are closed today and tomorrow, European volume has been light, but trade has been modestly bullish, retracing some of Friday's losses.

Really ES has been slowly grinding up since about 9:30 last night, the first plunge of any consequence was on the US open.

In the EU, some decent news out of Portugal as the Troika completes the fiscal target reviews and sats Portugal is on track to meet their 2013 fiscal targets and did receive their next bailout payment.

There are some other rumors about a Merkel - Barrosso meeting in Berlin with a statement at 7 p.m. and that the banking union is on the agenda.

Reuters just released this news:

G7 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS TO HOLD PHONE CALL ON EUROPE TUESDAY MORNING 


In my view there are 2 conflicting themes in play, 1) the bevy of sell side orders coming from retail on the break of the 200 as mentioned and expected last night and the possibility of a Euro short squeeze possibly starting.

 ES overnight with those sell-side orders coming in at the US open as expected...

 EUR/USD open last night

Euro moving up for the second day on EU positive news/rumors.

Lets not kid ourselves in to thinking the EU will fix anything, but all that is needed is a short squeeze in the euro.

I'm never a fan of a.m. trade, it's very deceptive, but we'll see if these new shorts get left holding the bag.