Another weekend, another immediate major European crisis averted with a ND pro- bailout victory. You could say market knows politics best as it started to price in the event late last week. Unfortunately it can’t erase the market damage started by all this in early May. A coalition gov’t still must be formed quickly to avoid a repeat.
What’s next? Well, a lot as far as potential catalysts go after this seemingly anti climatic Greek event!
FOMC meeting 20/06. This is a 3 part event with statement, forecast update and Bernanke’s press conference. At this point it’s not clear to anyone what will be done (twist extension possibly). What might be said in the press conference is likely to be the key as expectations are for further easing hints.
Eco’ data on 21/06 with flash Global PMI’s will be first indication of what is happening in the month of June.
Market will likely be happy with any signs of stabilization after May disappointing #’s.
The market also gets back to some corporate news with some notable earnings for May end reporting companies. It kicks off Tuesday with FDX, followed by the likes of ADBE, RHT, ORCL for tech later in the week.
In all, lots to possibly drive market through SP 1340 resistance levels.