Getting closer to a complete IMF/EU bailout (Ireland), just as Greece was bailed out as discussed in Are HFT's supports @1.36 EUR? Refer April 15th 2010 (update 1); we may see a major sell off 'bailout news' the reason would be that the with Greece and possibly Ireland tapping the IMF/EU bailout fund, not only are the PIIGS on ECB bond buying life-support, but are economically dropping like flies. As a backlash against bailout of indebted countries will exasperate, more so from Germany. An eventual restructure of debt will occur, so essentially bankruptcy will be the final play. The market knows this and will sell on that premise.
Then there is the Federal Reserve 600billion print job, will that be a support to markets? Maybe not, after the 30yr (yield @ 4.32%) auction flop. Traders should quickly remember what started to knock the Dow and S&P500 rallies down in March/April/May 2010; was the high yield on the 30yr i.e pass on to 30yr mortgage rates.
Watch the EUR.
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