First we note the obvious: Friday’s data on retail sales was much weaker than forecasted but unlike the previous week when the unemployment number was much weaker then expected, the S&Ps tried to break late but the downside fizzled and we experienced a late rally to close higher on the day. Are we back to a risk on mode? It is too early to tell as the market is going to retest the 200-day moving averages on the various equity indexes. There is a great deal of money sitting on the sidelines that became nervous because of the May 6 market action. It appears it will take some sideways action above significant technicals to bring this money out of the closet and back to the capital markets.