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Market Preview: A Glimmer of Hope

NEW YORK (TheStreet) -- It might be cynical to call Monday's market action a fool's rally but even if the so-called special purpose vehicle for Europe that's been mentioned does surface, it's debatable if that's really enough to put the region on firm footing.

After last week's decimation in the major U.S. equity indices, a bounce off oversold near-term conditions was expected, and short-covering and window-dressing ahead of the quarter's end were also likely factors in the surge.

So while the 2%-plus bounce to start the week is nice, investors will be looking for concrete progress on Greece before pushing stocks much higher. Right now the headlines are little more than a glimmer of hope.

A clear sign could show up on Tuesday as the Greek parliament is set to vote on a property tax resolution that's required for the struggling country to receive its next installment of funds. Passage is by no means a sure thing, and the political ramifications for Greece could be wide-ranging if it fails as this would indicate a rift in the ruling Socialist party that bodes poorly for similar votes in the coming weeks.

One anomaly of Monday's rally was the lack of participation by Apple (AAPL), which was dogged by an analyst report that said it's cut orders to suppliers of parts for its iPad tablets. The stock dipped as low as $391.30 -- a decline of nearly 3% -- before climbing back to close down just 0.3% at $403.17.

The company didn't comment on the news, and other analysts actually had positive things to say on Monday, including Canaccord Genuity, which reiterated a buy rating on the stock with a 12-month price target of $545, saying recent channel checks had found Apple stores in Asia were full of customers. The firm's description of the opening of a new location in Shanghai -- Apple's largest store in Asia -- was fairly breathless.

"The impressive four-story store is located at the head of the very popular Nanjing shopping district in Shanghai, and the large space was able to handle the thousands of people shopping for Apple products," Canaccord said. "Apple's popularity in China continues to grow, and we anticipate continued strong sales for Apple as it grows its APAC region market share." Expect a few of Apple's many bulls to weigh in tomorrow on the iPad issue.

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