The stock market finished the week on a positive note after a very wild week as the S&P futures had around a 35 point range every day of the week. They did manage to close the week just barely higher and the Dow Industrials closed the week up just 30 points . The Dow Transports beat out the S&P 500 on Friday as it was up 1.85% and gained 0.97% for the week. Friday's rally was spurred by the new proposal from Greece that encouraged traders that a deal was possible and as of Saturday morning the Greek parliament appears to have accepted a new debt plan. But of course until it is signed and delivered things could always change. The stock market was also quite encouraged by the 5.23% gain in the Shanghai Composite after three weeks of losses and several large daily swings. Volatility was the key as the Market Volatility Index ($VIX) closed just below 20 last Thursday. this broke the downtrend, line a, from last October's high. It reversed 16% on Friday and could now correct back to the breakout level. Such a sharp drop from this high a level is typically a short term positive but is this a rally you can trust?
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