We rallied based on "Europe is Saved". We rallied based on "Bernanke to the Rescue". Neither have proved to be even remotely true, yet.
we are rallying because we completed a standard 50% retracement of the June gains AND BECAUSE TOMORROW THE EU WILL ACT TO SAVE EUROPE again. AND because it is the END OF THE HALF/QUARTER/MONTH and the JULY 4th FLAG WAVING HOLIDAY.
We are back to initial resistance near SPX 1335 and while we probably won't get another thousand point Magical Mystery Rally like last year, we could easily continue drift higher on low volume. Enjoy!