With the world awash in free money, assets of almost all stripes are in major demand. US equities are closing in on their highs for 2010 at the 1220 level. This may provide a convenient spot for longs to book some of their recent profits. A break opens the way for for a run to the 1265 area. 1195/1200 should act as very good support on pullbacks.
The positive equity/negative dollar correlation remains very strong, thanks to Capt Bernanke.
