The market gapped at the open and ran all the way till the last hour of trading. Then, it plunged and wiped out half of the session’s gains. The culprit? Greece. Zero Hedge reports,
Minutes after Greece passed a vote in which it promised to promise to promise to consider collecting 1998-1999 taxes (even as all of its tax collectors are about to go on permanent strike), the FT was breaking news that while the Troika was “bailing out” Greece in the past years, the country was spending itself into an even greater oblivion. As a result, the terms of the July 21 Second Greek Bailout will most certainly need to be renegotiated, with banks having to take even greater write downs on the bond exchange, and with far more capital having to be injected into the country.
Lets see what happens with the futures overnight.
Back to today’s price action, the move was an impressive one and gives bulls a shot at negating this rising channel break if prices can hold up. My focus index at the moment is the S&P 500 and a 1220 price break is what I am looking for to turn bullish. Overall we should expect prices to continue to falter in the coming weeks unless a legitimate bottom is put into place.
Economic calender:
Aug. Durable Goods Orders @ 8:30 AM. Forecast 0.4%, previous 4.1%.
Market analysis:
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Looks like a bull trap to me, breakou, pullback and trend continuation
Agreed. Sometimes these short, tight flags though after such a significant sell off can signal the bottom is near. Interested to see where it ends up. A break above $138 would be bullish short term.