With the Greek vote coming back a resounding “no,” the burden is on The Powers That Be to prove to the rest of the financial world that a Grexit is a non-event. And, that’s exactly the way the “markets” are shaking out thus far.
Thursday, SPX reached our bounce target from last Monday [see: All That Matters]…
…the charts suggest that the bounce could easily reach 2072 (the red channel midline) or, with a little more effort, 2081 (a backtest of the broken purple channel bottom.)
…and, even managed to close below Thursday’s short call [see: Greece Fixed Yet Again] at 2081.51.
SPX just tagged the purple target, backtesting the purple channel at 2081.51. I’d look to be short here with reasonably tight stops to protect against headline risk from “you know who.”
The S&P futures were permitted to drop to the SMA200 in the opening minutes of Sunday’s trading — nailing our downside target from last week. Note the gap has almost been closed already.
Likewise, the currency pairs all dropped to a fairly sturdy support point and promptly rebounded.
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