We woke up to another day of European shit breakfast. Spanish yields blew out over night and the Greeks replay the tragedy of not being able to form a government.
While the bulls prevented another major nose dive they seem to be getting weaker. Normally, a bailout such as we had in Greece today, would be enough to make the markets rally out of a murder hole. But the markets recognize Greece as a trigger and the really worries rest on the plains of Spain.
Then of course everyone is expecting the clam to act shortly.
The S&P closes below 1360; a key level for some traders. For me the crucial close is 1345-1354… This would be a clear low below the 50 day.
The VIX seems to confirm that while there is risk off there is no real panic yet.
DOW down 96
NASDAQ down 11
Gold down $13.4 @ $1591
Oil down $0.47 @ $96.54
