The highly anticipated European summit begins today in hope of trying to solve the European debt crisis. Any fix or solution to the problem is likely to be temporary. The stock markets expect something big to come out of this summit as the S&P 500 Index has surged by over 100.0 points in the past eight trading days. This tells us that a lot of the expectations could be baked into the cake already. Nearly every time that the European Union leaders have this type of pow-wow the markets retreat and decline after the meeting. In any case, the S&P 500 e-mini futures (ES Z1) are trading higher by 5.75 points to 1269.75 per contract. Believe it or not, the U.S. Dollar Index futures are declining this morning even as the European Union lowered interest rates by 25 basis points. This tells us this market is still all about the dollar. When the U.S. Dollar Index declines the major stock market indexes will inflate higher and vice-versa.
