Bears close their trades as S&P500 recovers a little.

Las week Friday was the only day with positive dynamics. It happened due to the fact that the bears closed their trades after 4 days of sales. The closing session of the week was calm, especially in terms of volatility. Only the economic instability in the eurozone caused some concerns.

As over the last 2 months only 2 weeks were positive, investors started getting risk-averse. Another concern for investors is Greece. It still cannot fully introduce its austerity plan in order to get another loan from the EU/IMF/ECB trinity of lenders.

Investors started expressing real concerns when the Fed Reserve’s FOMC announced $400B purchases of long-term US-T-bonds (from 6 to 30 years) and $400B sales of short-term bonds (up to 3 years), which are planned to be implemented until late June 2012. The market reacted with a 3% decline. Even though on Friday the market recovered a little, the weekly decline was equal to 6.5%.

The US Dollar gained against the basket of currencies, hitting the 7-month high.

It is interesting that precious metals failed to attract new investors and lost a bit of their value. On Friday gold reached $ 1645/oz (a 5.6% decline).

All the economic sectors ended the week in the red zone.

According to the Department of Portfolio Investment of , now there aren’t any major reasons to talk about some market recovery. At this point trading is mainly of speculative nature. The sentiments are mainly negative. That is why it is better to abstain for going long.