We rallied based on “Europe is Saved”. We rallied based on “Bernanke to the Rescue”. Neither have proved to be even remotely true, yet.
we are rallying because we completed a standard 50% retracement of the June gains AND BECAUSE TOMORROW THE EU WILL ACT TO SAVE EUROPE again. AND because it is the END OF THE HALF/QUARTER/MONTH and the JULY 4th FLAG WAVING HOLIDAY.
We are back to initial resistance near SPX 1335 and while we probably won’t get another thousand point Magical Mystery Rally like last year, we could easily continue drift higher on low volume. Enjoy!
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‘merica #1
Amen.
thanks scott. housing seems to be pushin higher. i dont see how anyone can call the all clear. we still have so many unknowns. with r dollar rising, europe ??? middle east??? im still mkt neutral. im might miss some but lose none.
The EU summit begins tomorrow… on the anniversary of the event that sparked WW 1. How auspicious!
Good point to keep in mind: how much of the action we’re seeing this week is macro-driven, or merely window-dressing for the end of the second quarter?
Surprise EIA Oil Inventory helped to on a short squeeze. For me, WTI at the 80.33 level is what I am watching going into Iran Oil Embargo…I think price continues to fade.