Why we did it: We believe an intermediate-term low was made early last week, with the S&P 500 testing its 200-day moving average and international markets finding support at their 2010 and 2011 lows (see Weekly Chart). We do not know if these will be the lows for the summer, but after reducing risk in April, we are returning to a more neutral position. 'Policy Purgatory' continues, but last week's rise in global equity and high yield bond prices was supported by some fundamental policy moves:

David Fuller's view I recommend that subscribers read the three policy moves detailed in The Weekly View. Of these, the first is by far the most important in my view.