Taking stock with the Equity Indices after the Fiscal bluff

 Rally looks set to continue, this could be the signal for a general pick up in equities in 2013 as bonds and other asset classes simply start to look tired. However we have 6 weeks before another round of "call my bluff"!!.Surely whats been acheived doesnt warrent a slap on the back and congratulations all round ie 50 big points on the ES? Nothing has really been dealt with and the fiscal issue looks now similar to Europes problem where by politicians kick the can down the road and put off difficult choices. Who once said "you cant please all of the people all of the time". Whats needed is leadership and the understanding that this is an economic problem rather than a political one however a problem that will have a political resolution.However I have long learned never to under estimate the power of positive sentiment in equity markets so this must go higher and technically speaking the candles/bars must break higher still.

Euro stoxx50

DJII

 CAC 40

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