U.S. stocks closed more than 1 percent higher in light volume trade Monday, following gains overseas on news of a bailout agreement between Greece and its creditors. ( Tweet This )
"I think it's just a sigh of relief that it's over, but let's face it, they just kicked the can," said Maris Ogg, president of Tower Bridge Advisors. "It seems like we kicked the can on a number of fronts. Earnings probably will be front and center int he next couple of weeks."
About 11 stocks advanced for every 4 decliners on the New York Stock Exchange, with an exchange volume of 737 million and a composite volume of near 3.1 billion in the close. Average volume for the entire day is 3.4 billion.
"You've got a relief going on, short covering going on," said Quincy Krosby, market strategist at Prudential Financial. "What you want for confidence buying is to see a market close with buying orders on the close."
Both the Dow and Nasdaq closed above their 50-day moving averages for the first time since June.
The Dow Jones industrial average closed about 217 points higher, with Microsoft and DuPont leading most blue chips higher. The index recovered recent losses to hold nearly 0.9 percent higher for the year.
The S&P 500 hit 2,100 but closed just below it. Boosting the index was a rise in information technology stocks and consumer discretionary's 1.47 percent gain to an all-time high.
The Dow transports also advanced more than 1 percent, with airlines leading gains.
"I think the market's technically very oversold," said Bruce Bittles, chief investment strategist at RW Baird. "The market's poised to go up but to break this trading range (we've been in) since January you need to see volume pick up... number of stocks hitting 52-week highs expand."
He said the S&P 500 breaking past 2,100 would be an encouraging sign.