The markets are higher on the day a panic has subsided. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.26, +1.14 (+0.97%) on 89,607,142 in volume. All eyes have turned towards Merkel and Sarkozy, the two leaders from Germany and France. They will be meeting tomorrow to discuss key initiatives to help the Eurozone.

The stock market leaders today are banks. In the fear and volatility over the last few weeks, the bank stocks took the biggest hit. It makes sense that as calm returns, these stocks would see a continued solid bounce. Bank of America Corp (NYSE:BAC) is trading at $7.49, +0.30 (+4.17%) and JPMorgan Chase & Co. (NYSE:JPM)  is trading at $36.57, +0.66 (+1.84%).

Technology seems to be the weakest on the day after Google Inc. (NASDAQ:GOOG) bought out Motorola Mobility Holdings Inc (NYSE:MMI) for $40.00 per share. This is causing some selling in Google which in turn is causing selling in some other internet plays like Baidu.com, Inc. (ADR) (NASDAQ:BIDU) and Amazon.com, Inc. (NASDAQ:AMZN).  Many technology stocks have seen a rapid share price increase over the last few trading days as well. The market seems to need a small pause to digest the gains.

The market continue to look towards the Merkel Sarkozy meeting tomorrow. Great news and optimism could give more legs to the latest bounce while no news and pessimism could give rise to another sharp, quick sell off. To get the best trades in the world, the best analysis and guidance given to hedge funds, take the seven day free trial to theResearch Center and Intra Day Stock Chat. Join the pros to profit with the pros.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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