“Obviously, the Spain news has had a positive impact on futures and will likely lead to a huge pop on Wall Street for Monday’s open. We expect the second layers of resistance we have charted to come into play but something just doesn’t feel right. While the bulls’ momentum has been strong, the bears’ bite was just as powerful during the prior week sell-off or did everyone forget?
It’s hard to say the “trend” is up until the market breaks out past stronger resistance so let’s just say the rally could continue this week. The bulls love to climb a wall of worry but the bears like to lay back and attack when you least expect it.” (from 6/10/2012 Weekly Wrap/ Monday Morning Outlook)…
The bulls came into the week looking to extend their winning streak and got off to a great start on news Spain was getting a $125 billion “loan” to help bail out its banks. We said the sugar high wouldn’t last and the bears won Monday’s session.
It would be short-lived as news spread throughout the week that world leaders are ready to throw the kitchen sink at Greece’s debt crisis, the market rallied right up to the second layer of resistance levels.
With all eyes on Greece, Wall Street is bracing for this week’s possible breakout or breakdown.
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