Posted June 10, 2012 18:11

This past week, the market had a huge rally. It all started on Sunday night when the futures were down almost 100 points. But then came Monday morning and the futures were null. This was the first sign that the market was turning around.

The market rallied through Wednesday as the major indices posted their biggest gain this year. The rally was mostly due to hopes of QE3. As Thursday rolled along, Ben Bernanke announced that he had no intention of enforcing QE3 in the near future. Immediately after he said this, stocks and commodities fell and bonds rose. Friday was a quiet day as hopes for a Spain’s bailout gave a lift to markets.

Looking forward to next week, if we do get some sort of Spain bailout, then we should see a significant rally next week.

Technical Outlook:
Current S&P 500 Level: 1325

Support: 1325 then 1292
Resistance: 1333 then 1340-1350