“A Bull Market tends to bail you out of all your mistakes. Conversely, Bear Markets make you PAY for your mistakes. ” — Richard Russell

As expected, the major indices bounced up 2% for the week and re-took the 200SMA. Below are the major events which occurred this past week.
1. IBIS — reported French & German banks hold approximately $958 Bil. in debt from Spain, Portugal, Greece & Ireland;
2. Spain Debt Sale — sold $3.8 bil 10-year bonds at 223 bps higher than the German’s bond on 6/16/2010. Spain’s bond spread is the highest since 1999.
3. Congress mulls extending off-shore drilling ban (from 6-month hold).
4. BP — as expected, BP suspended dividends and set aside $20 billion for damages.
5. UK moved forward with bank bonus tax.
6. China ‘s Central Bank moved to make its exchange rate more flexible –this move could eventually boost the spending power of the country’s consumers, lift its investors’ expectations for global growth.
7. TED Spread — creeps higher as the TED spread (the difference between the interest rates on interbank loans and short-term US government T-Bill.

The week ahead:
1. G-20 Meeting — 6/25 & 6/26 in Canada;
2. Tues 6/22 — Existing Home Sales; 2Q earnings -> ADBE, CCL, WAG
3. Wed 6/23 — New Home Sales; FOMC Mtg; 2Q earnings ->RAD, NKE, BBBY
4. Thurs 6/24 — Initial Unemployment Claims; Durable Goods Orders; ORCL, PALM, RIMM, LEN

TED Spread Chart