The bears sure had their spot to pounce yesterday. As recently as late-afternoon, it looked like we might finally see some type of a wash-out selling climax. Instead, another final hour rally propelled the market to near the flatline. Apparently, a rumor of officials in Europe saving their Union had much to do with it. Overnight, we continued to see news flow across the pound, with futures skyrocketing into this morning’s opening gap higher.

As we wind down both the final trading session of June and the second quarter of 2012, the S&P 500 is back into the 1335-1360 range, and the Nasdaq Composite is above 2,900. There is a feel of exuberance back in the air, with trapped longs throughout this correction  once again rejoicing in not having to face a bloodbath.

While we may very well have bottomed and are about to see a change in trend, I am in no rush to make hasty trades. I still do not see a proliferation of quality charts that I usually look for in an healthy market. However, I can also afford to be patient here because I have no losses to chase back, riding the uptrend in the first quarter of this year before moving to cash in April. In other words, I can stick to my style and discipline here, willing to leg into some longs as I see fit next week. This could also be a short opportunity, but as you can see with this morning’s action being in cash is usually best in bull market corrections.

Huge opening gaps are as difficult to play as they come. On a summer Friday that is the last session of the month and quarter, that only adds to the level of possible deceit at play. If this rally is just getting going, there will be better spots to enter.