Yields on the five-year US Treasury note have seen a slow process of attrition over the last few weeks despite concerns about the potential expiration of QE2.

The strength of sterling and the euro underlines the fact that the US dollar is not showing any safe haven behavior.

Clive Corcoran would expect to see the bulls try to regain control of the agenda while the energy/metals complex is taking a rest.

S&P 500 futures have been sliding since Monday's market closed. If price support in the 1300-1310 region were to be taken out today, then Clive Corcoran would be targeting a potential retest of the 1280/5 zone.

Although Clive Corcoran has been notably bullish on the micro cap stocks for some time, he believes that the safest stance now may be one of removing or minimizing exposure to this sector.

The Russell 2000 continues to race ahead of the pack, and as the end of the quarter approaches, it is just conceivable that a last-minute spurt could see this micro-cap index challenge the previous historic high.

The S&P 500 futures (June e-Mini) contract is showing a negative tone in European trading on Tuesday morning and threatening to break below an uptrend line.

The S&P Midcap index is one of the few major indices which is at historic highs and appears to be heading towards a level which is 2.5 times the low registered during the 2008 crisis.

The Portuguese government has collapsed, Moody’s has downgraded Spanish banks, and the EU leaders are meeting in Brussels Thursday and Friday to come up with soothing words to patch up the structural shortcomings in the Euro-Zone framework.

The FTSE is struggling to make it back above the pivotal 5800 level, which also marks overhead resistance from the cloud formation.