Collective maneuvering by sovereigns is making it tough on the bear's vision of economic disaster and effectively putting a range bottom in the equity markets for the balance of the year. Only a significant impediment to the EU's ability to cover shared subsidization of EU debt problems will turn the market south. Extended upside action and the ultimate test of all time highs will be difficult however since generational choices on spending will limit job creation and the huge government stimulus tab of the last few years will be a drag on economic growth.
Yesterday's Supreme Court ruling on Obama Care may ultimately be the driver re-electing Obama since it will place in contrast a Republican endeavoring to take away future benefits during a recovering market from a general population who have lost twenty years of wealth in the last seven years. People may complain about big government, but when it comes to their own benefits such as Social Security, and now health care, it is not big government, its mine.
