NEW YORK ( TheStreet) -- With the July Fourth holiday coming in the middle of the week, market watchers anticipate Friday's rally could continue to build early on but caution that the euphoria over latest Europe's debt crisis plan may not last much longer than that. "The markets could continue to rally and have been looking for a reason to rally," said Adrian Day, president of Adrian Day Asset Management. "They were looking for a) movement in Europe and b) stimulus, and they got both."
The Dow Jones Industrial Average soared nearly 278 points, or 2.2%, to close at 12,880 on Friday. The blue-chip index rose 1.9% for the week and finished June with a gain of nearly 4%. Despite a 2.5% decline in the calendar second quarter, the Dow is now up 5.4% so far in 2012. The S&P 500 surged 33 points, or 2.5%, to finish Friday at 1362, right at its high for the day. The benchmark index advanced 2% for the week, putting it up 4% for the month. Although the S&P 500 fell 3.3% during the quarter, it's appreciated 8.3% year-to-date. The Nasdaq jumped nearly 86 points, or 3%, to settle Friday at 2935, logging its fourth straight weekly gain. The index booked a 1.5% rise for the week and added 3.8% in June. For the year, the Nasdaq is up 12.7%, but it lost 5% in the calendar second quarter. In part because of the midweek holiday, the coming week could be one of the lowest volume stretches of the year, according to Uri Landesman, president of Platinum Partners, who thinks cumulative trading action will be in the bottom five for 2012. Landesman is bearish about how the next few months will play out. "This summer people will think their money is better in their mattress than in the stock market," he said. Landesman expects the S&P 500 to trade within a range of 1290 to 1360 in the short term and says the overall trend will be downward further out, predicting the S&P 500 could "easily" correct by 150 points into Labor Day with the action marked by summer's characteristic low volume and high volatility.