S&P 500 Recap and A Look Inside the Markets

Standard & Poor’s has put European policy makers on notice that a rescue package for Greece that involves losses for private bondholders would put the country in effective default, casting doubt on a French proposal designed to get banks and insurers to help shoulder the load of a second bailout. From the globe and mail july 4th. link

Gold and Silver began to rally, Monday and that has continued this morning, Gold is up 20 dollars and silver is up 60 cents at this time. S&P futures are up slightly.

This past week was amazing for stocks and the rally basically came out of nowhere and without significant news could it be just optimism of Greece's debt crisis resolution, don't think so. I think something bigger will be announced this week.

Looking back at the last session SPX again opened with a nice gap higher. The big move of the day came right at 10:00 am as the ISM data appeared to create more excitement than deserved. The rest of the session simply continued to crawl higher without any significant pullbacks along the way. The bulls are in full control, for now. It is amazing the difference a single week can make. Last Friday afternoon it seemed like the sky was falling; this week it seems as though the bulls are unstoppable. It is just mind boggling. 

For the SPX Index there were 452 components advancing and 24 components declining. On the NYSE 3,138 issues were traded with 2,518 advancing issues and 544 retreating issues, a ratio of 4.63 to one advancing. There were 168 new highs and 5 new lows. The five day moving average of New Highs is 98 while the five day moving average of New Lows is 19 and the ten day moving average of Net Advancing is 896. The Net Advancing data indicates a bullish trend.The SPX gained 71.22 points during the week. The range for the week was 73.48 points, 5.79%. The four week RSI of the four indices (SPX, Dow, NASDAQ, and Russell 2000) is 70. Pullbacks often occur as this RSI reaches 80 and bounces near 20. This past week hardly requires a recap; it was an outrageously bullish week of historic proportions. But it may be interesting to note that the last time the total tick for the week was at 900,000 was the week ending April 29th; the market topped right after that.

The MO is very overbought but can stay there and the MSI is just heading into bull territory. Waiting for some sort of news this week. This cant be happening for no reason. 

Money continues to come out of bonds and dollar, expecting some sort of easing news soon.