Israel and Hezbollah went at it over the weekend with bombing which did not do a lot of damage. It can be compared to a playground fight, where some haymakers missed, and ended with a wrestling match broken up by the playground monitor.
US General CQ Brown is out saying that the immediate risk of a broader war in the Middle East has eased somewhat after the Israeli - Hezbollah clashes over the weekend.
However, he also does war that Iran still poses significant danger as it weighs strike on Israel.
So although there is some good from the weekend skirmishes, the risk with another adversary remains real and elevated.
Oil prices moved higher yesterday and got close to its falling 200-day moving average at $77.80. The high price reached $77.56. That 200-day moving average will be a key barometer to get to - and through - to increase the bullish bias going forward.
