After last week's rally in risk ended on a positive note in New York on Friday, it continues this morning with the Euro Stoxx 50 up 1.80% as of this writing. Looking at the charts, the Euro Stoxx 50 is now slighly busting above previous support (2850), which this time around should hold as resistance if a summer selloff in stocks is to endure. Many U.S. equity indices are at similar key points. A meaningful break and hold above these levels and any weakness the past few week will have become a buying opportunity.
Throw in the fact that QE2 is about to end, issues in Europe, and U.S. debt ceiling talks still not resolved and you got yourself a mix of serious uncertainty.