It’s All Greek to Me

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In the aftermath of the Greek austerity vote in the affirmative, the market is slightly green. At various points throughout this year, especially the day after Osama Bin Laden was killed, the market has seen a big fade after an initial positive reaction to good news. This time around, the issue is whether that trend has now become too obvious to persist. Rather than trying to play that guessing game, I am focusing on the broad health of charts.

As I noted last evening, I am seeing more constructive technicals that I have in at least five weeks. While a pause in the coming days would not surprise me, given how extended some names like CMG and LULU have quickly become, the bulls have defended a key area of support on the S&P 500 in recent weeks and have since wrestled the initiative away from the bears. Moreover, Freeport McMoRan has continued its upside breakout from the descending triangle, which is an excellent leading indicator, if history serves me well.

In sum, I place more significance on the above than I do trying to game the shenanigans in Europe.