1150-level broken in S&P 500, we see continuing risk appetite

• The Swiss National Bank was slightly more positive in yesterday’s assessment and the bank raised its 2010 GDP forecast from 0.5-1.0% to 1.5% while price stability is still expected in the short term. We are bullish on the CHF.

• US Retail Sales is the most important number out today, but we are once again dealing with a February number and the weather impact is an unknown. Vehicle sales dropped for a second month in a row in February and they are now down 8% from December.

• Later we have the U. of Michigan consumer confidence report and business inventories. We are not as optimistic as consensus regarding inventories as we look for a decline of 0.1% decline vs. an increase of 0.1% for consensus.

• If we close above 1150 today in S&P 500 and open higher on Monday we could have a strong signal for further strength in the near future with our sight set on the 1200 mark.