As the Pundits have declared sell the World, beware the squeeze. Spain and Italy surge 4%.

Like we argued, the dip turned into a squeeze. Currency moves turned out to be a major non event. The Stoxx rallied right back up to resistance levels, with the Banks trading strongly. It looks we will be up for at least one serious squeeze while trying to brake the 10 day resistance levels. Some of our risk markets are now trading in positive territory. Beware the upside….Stock intraday charts below,

…and the IBEX and MIB surge some 4%. Welcome to short gamma….