The really big money spenders will start going away on vacation now and will pull out their investments so they can enjoy their vacation without thinking about what the markets are doing.
That coupled with the usual problems that always appear during the summer like European crisis, Iran Oil halt deadline in June and slower trading activity will lead to the path of least resistance being down.
El-Erian: Spain could make or break Europe, Greece is set up to run on borrowed money indefinitely, that is impossible.
A string of horrific PMI data from the Euro Zone economy :
Italy and Spain registering sub-44 Manufacturing PMI’s.
China Manufacturing PMI continuing to show a sub-50 reading.
Germany came in with by far the worst payrolls release since mid-2009.
The overall March Euro Zone unemployment rate coming in at a heady 10.9%.
The Bears are Back from Hibernation and its not looking Pretty.