The first week of 2012 is in the books and it wasn't bad. We managed a gain of 1.58% in the S&P 500 but if you bought the SPDR S&P 500 (SPY) at the open Tuesday and sold at the close today, you just about broke even as the majority of the gains came over New Year's weekend.

On the other hand, we did have good intraday trading opportunities as dip buyers jumped in on soft opens three straight days. The bounce was a little less energetic today, but again, we managed a decent recovery and had good support. When the dip buyers are busy, that usually bodes well.

Probably the most notable development this week was that we ignored poor action in Europe. Better-than-expected jobs news was the main reason for that, but I expect it also had something to do with positioning and the various games that occur at the start of a new year. I don't think we've seen the last of Europe, but perhaps we will see a little less sensitivity to it -- unless some new drama develops.

Earnings are coming, so next week will be all about expectations.