It’s been an interesting week in the markets. The SPX is up more than 2% after two nice up days. Volume however has been weak even for Summer trading.
End of quarter window dressing? Probably. Sucker’s rally? Maybe, but so long as we stay above that 200 day line, it’s difficult to get overy bearish. Also going for the bulls: 10 year yield jumped 4% today to close with a 3 handle, and Dollar index fell below 76.
Yes, we’ve been focused on the macro risk in this space recently, but as always, what matters most is the market’s reaction. I’m not quite ready to fire off a bunch of buy orders, but as long as we’re feeling optimistic, how about this one coming off support:
Should the Greeks decide to play nice, and the end game is put off for another few months, we just might find we have a nice tradeable rally on our hands.