The Italian bond auction has pushed equities upwards as “risk-on” trading continues. The SPX 500 sits about 8 points higher than last night’s close (as of 7:45am EST). With a massive rally and off of the November lows, the markets are looking for any reason to push higher. I would remain extremely cautious as equities continue to rally off of soaring Italian bond yields, rating agency threats, and US political deadlock. This trading environment could lead to abrupt reversal as the macro trend still remains in favor of the USD.
