According to news reports Germany has agreed to another Greek bailout even though Greece has missed every target of the previous bailout and will only make symbolic further concessions. This has not been confirmed but it seems markets believe it as the Euro is surging as are equity markets around the World.
I took a moderate trading long position last week as we were oversold, seasonality was positive and sentiment was negative. Even though we did not see much panic or fear, the conditions likely called for a slightly more aggressive posture but I was worried about the situation in Europe. I was surprised that few showed much concern about the situation in Europe but it appears the majority was correct.
As a reminder we are still oversold until the end of the day tomorrow and seasonality is positive through Thursday. I am likely to continue giving the bulls the benefit of the doubt through tomorrow at minimum.