The stock market is surging again. Gains sit at over 10% in the last week. This euphoric move in the markets has been on continued talk about a European bank recapitalization plan. This plan is said to mirror TARP in the U.S in 2008. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.97, +3.26 (+2.82%. Just last Tuesday, the SPY hit a low of $107.43.
With this talk of recapitalizing the banks, Greece's woes are a distant memory as are Italy, Spain, Portugal and Ireland. These issues should come to the forefront within the next few days again. The way to tell of this reemergence of fear is to simply look at the charts. As the S&P 500 runs into resistance at current levels, a pull back in the markets looms. The cause of that pull back will be European based. Watch this between Tuesday and Wednesday of this week. Keep in mind, the bond market is closed today. The bond market controls the stock market. In other words, when the cat is away, the mice will play. Thus a big light volume rally today on hopes and dreams. Continue reading here:http://bit.ly/nDEyR8