The major indices dropped sharply on Option Expiration Week and encountered resistance at the 200-SMA. Below are the major events which occurred this week.
1. BP temporarily sealed oil leak –BP reported a pay out of nearly $4 bil in claims.
2. Moody downgraded Ireland — noted Ireland ‘s government’s ongoing loss of financial strength and the country’s weakened growth prospects
3. IMF and EU withdrew $21bil from Hungary — Hungary must cut their budget
4. Citi Bank (C), Bank of America (BAC) — beat profit views on lower credit losses — shares fell on the banks inability to expand revenue.
5. GE recorded profit — revenue fell 4.3% to $37.4 bil, missing est of $38.4 bil
6. China cuts Treasury holdings by $32.5 bil in May to $867.7 bil; Japan also cuts 1.1% to $786.7 bil.
7. Elizabeth Warren (law professor) is candidate to lead the consumer watch-dog position — position created by the Financial overhaul legislation.

The week ahead — 2Q earnings season continue:
1. Farnborough Internation Airshow — Europe collects to see the latest in airline production, including the Boeing 787.
2. IMF seeks another $250 bil to boost its lending capacity from $750 bil
3. 7/20 — Building permits; Housing Starts;
4. 7/22 — Existing home sales; Leading indicators;
5. 7/20 — EU Stress Test; Greece 1.5Bil Euro aunction