The markets put in a solid low on a gap down this morning. This selling took place in response to fears of a new emergency election in Greece. On this worry, the Dollar moved higher which in turn pushes the stock markets in the U.S. lower. The SPDR S&P 500 ETF (NYSE:SPY) hit a low of $131.38 before rebounding all the way back to its current level at $132.38, +0.43 (+0.33%). PowerShares DB US Dollar Index Bullish (NYSE:UUP) opened at $21.78 but has since fallen to $21.68, -0.05 (-0.21%). This gap higher in the Dollar and then fall, is the reason why the markets have reversed and are now trading higher.
It is highly likely that the markets have point in their low for the week. The $131.38 level on the SPY happens to be a master gap fill from the closing price on April 19th, 2011. In addition, the markets are headed towards the Memorial Day holiday weekend. The Federal Reserve always likes to push the markets up into a holiday weekend to get consumers spending and traveling. In addition, as the volume dries up, the markets always have a tendancy to float up. It is very likely that the SPY will head to $133.60 by the close on Friday.