Friday’s results: S&P 500 up 20.84 points (1.69%) to 1,255.19

A look back on yesterday’s market

Things started off strong right from the opening bell when news of the Eurozone’s new economic agreement broke. Despite many economists calling it a “water pistol,” instead of the “bazooka” that they felt was needed to ensure the continuity of the Euro, traders looked favorably on the news and the market continued to rise throughout the day. The market flattened out around the last two hours of trading, and the SPX hit resistance around the 1,260 level, however, it continuously found support at it’s 100-minute EMA throughout the day.

Time value in the weekly SPX puts expired quickly, leaving traders with the ability to close out their positions after a short time exposure, giving them the possibility of opening new positions throughout the day. Overall it was a relatively calm day, with bullish trades highly profitable. Some traders claim this may be part of a Santa Clause rally. We’ll have to see if they’re right, or if the market is just continuing its trend of spiking on even a hint of good news from Europe. Keep in mind, though, that the holiday season is usually highly positive for the market.

Good luck trading next week!