Markets rebounded nicely from where we were 24 hours ago as they came to the conclusion that the election outcome was not that bad. However plenty of risks remain as Spain had to rescue its third largest bank, Bankia, having previously said they would not help. The markets were helped by news that the US consumers are back spending on credit with the highest numbers in 10 years. Greece’s largest vote winner, ND has failed to form a Government due to lack of support for Austerity and if this continues Greece will have to hold another election. Today is a quiet day on the Economic front with the Fed’s, Lacker due to speak later.

NOTE: All comments below refer to the June Futures Contract in each instrument apart from where separately specified.

S&P 500

The Gap trade worked really well yesterday as the S&P had a 30 handle move off its lows. I took profit at 1364 and I am now flat. I will look to buy from 1355/1360 with a 1349 stop and I will sell the market from 1371/1376 with a 1380 stop. I am impressed to see how the market rebounded again off this 1340/1350 level and the bulls are not going to give up easily.

DAX

The Dax had a nice move from the 6440 level and I was able to take profit at 6550. I will look to reset longs on any dip down to 6470/6500 with a 6440 stop.  A gain I am only trading smaller positions with bigger stops given how volatile the markets are.

Euro/USD

The Euro never dropped down to my buy level and I will still buy on any dip from 1.2950/1.2980 with a 1.2930 stop. If I am taken long I will look to take profit at 1.3040.

USD/JPY

The USD/JPY continues to trade heavy as traders take flight to the Yen. I will be a buyer if the market dips down to 7930/7950 with a 7895 stop looking to take profit at 8020.

MAY IBEX

The IBEX had a huge move off its low yesterday as the market briefly broke the very important 6700 level only to rebound with a 300 point rally. I will look to buy from 6750/6850 with a 6700 stop. Again given how volatile this market is I will only trade in small size with a larger stop.