The S&P500 had a “cup of coffee” below its 200-day, which got the bears all lathered up and their you know what ripped off.    Mr. Risk and the S&P’s have gapped up through resistance in overnight trading on the Spanish bank bailout.  It will be interesting to see how it holds up at the open.

This bounce is going to be THE test for the market as to how it trades the rest of the  summer, in our opinion.  The news flow over the past week has been positive and it has caught many offside.

Will it be enough to thrust the S&P500 back above 1400?   We’re not so sure, but do respect the power of the rip current here.

This week’s trading is going to provide mucho info about the next few months.   Stay tuned.

(click here if chart is not observable)