Another Overnight Rally On Hopes

1348 and 1357.27 (IB data). These are the numbers on the S&P cash that I'll be watching this week. 1348 is the .62% retracement from the recent highs to the recent lows. 1357.27 is an open gap, and coincides with a .786% retracement.

While it is significant (and bullish) that the futures have broken through the down trend line from the 5/02 highs, it did so once again in the overnight session and, even worse, on hopes of a Greek bailout.

Hope is a weak emotion in the market. As I often say when such overnight moves occur, I'll refrain from betting until I see how the market acts in the light of day. That's why I watch the S&P cash market. It does not trade. Therefore, it provides a much clearer indication of reality.

Hopes of a Greek bailout can also set up a buy the rumor/sell the news trade. Also, the shortened week is a great time for month-end window dressing. I'll be playing the fringes for now.