Likely Greek Default Worries Market

By David Brown, Chief Market Strategist, Sabrient Systems

After last week’s stellar performance, the markets dropped into negative territory today, as investors realized that Greece might actually be allowed to default.

Same Old Story, Different Excuse

By David Brown, Chief Market Strategist, Sabrient Systems

The market is off to a great start this week, powered by last week's momentum and further buoyed by a lessening of fears about Europe's sovereign debt. All the major indices are above their 50-day and 200-day moving averages, with the S&P 500 finally breaking out of the 1120 resistance level, closing today at 1141, a new 4-month high. As an interesting historical aside, the 1120 resistance level was first encountered way back in April 1998.

Perhaps it was the new senator from Massachusetts who let the bears out, but I suppose it was a bit more than that. When the week began on Tuesday, after the Martin Luther King holiday, the bulls were grazing happily on GARP stocks, as contented as California cows.  But then somebody opened that gate, and the bears roared through and the bulls ran for cover.