What a day!! Seems there was something on the market floor that caused a rather big slip. A REALLY BIG SLIP. Yes, it was a big spot of GREECE!
Things in Europe are just dysfunctional~ Like a large family, where everyone seems to have their own agenda. There's the passive-aggressive one, the manipulative one, the bully, the liar, the whiner, the ADHD one, etc. etc.
Today, the passive aggressive member of the family (Greece), after begging and crying for a few billion sheckles and getting their way said.......well, maybe we don't want your money after all! Nanny nanny boo boo. Really? REALLY! Yes, it seems the Prime Minister of Greece is taking a page from the Congressional School for Aspiring Self Serving Politicians. Yup. Right out of the first course, "Taking Care of Yourself 101". Believe it or not, the Prime Minister of Greece decided it was better not to do his job and what was best for the country. No, no, better to do what is best for the Prime Minister! Yea, that's the ticket. Yes, we'll let the people decide! What a good idea! That way no one can blame the Prime Minister and he'll be popular. And being popular means staying in power. He just forgot that being the Prime Minister of a bankrupt nation is nada, zilch, zero, phfffffft on the power scale. Prime Minister, have you been getting into the family hooch again? We told you that still in the back yard was strictly "off limits"!
Then there's Italy stirring up things a little as they just aren't getting enough attention. Boo hoo. Add it all together and you can hear the elevator operator asking "Going Down?" As if there was any choice. Remember that thing we've talked about before. You know, uncertainty. We thought there was some certainty that Europe would actually do something about the financial crisis there. And then Greece threw a curve ball. Now we have uncertainty galore. The market HATES uncertainty. And where there is uncertainty there is crazy volatility. Hence the VIX is now back in the stratosphere, and who knows which way things will go tomorrow. Seems there is a hint of panic in the air boys.
The Charts - DIA and SPY
We had hoped the our first line of support for the DIA would hold. But seems the pace and size of the drop Monday was just too great and the support seemed to just disappear. Worse, we opened BELOW the first line of support!! The DIA held the second line of support. But given the increasing volume for Monday and Tuesday I'm not holding out much hope for that support to hold.
Making matters worse is the daily chart of the SPY. It broke the first AND second lines of support and on big volume. It is sitting below the 20 EMA. and looking weak, as if to say 50 SMA here we come.
The direction of the market seems to move on a whisper of wind these days. And these charts are looking weak. I see a good possibility of re-testing the bottom of the original channel that we were stuck in for two months........ DOW 10,600.
Bulls cross your fingers AND toes. Bears, have another beer and cheer. Below are the daily charts for the DIA and the SPY.
CURRENT MARKET TRENDS
Long Term (Weekly Chart) – Sideways with a down bias
Medium Term (3 day chart) – Down
Short Term (Daily Chart) – DOWN
No comments:
Post a Comment