A fear over a Greek default continues to dominate headlines, but today’s action was not as bad as it could have been. Technically speaking today was a distribution day with volume rising on heavy price declines. However, given the move off the lows of the session it diminishes the value of the distribution. While Greece is in the forefront of the news cycle we do have a FOMC meeting this week concluding on Wednesday. Most anticipate a rate hike coming in September, but we really do not know if or when the Federal Reserve will hike rates. A solid move off the day’s low is a good sign for the market with a few of our winners ending positive on the session.

The climate certainly feels like many are afraid of what may happen with a Greek default. We are unique as we do not need to analyze what will happen if Greece defaults. Simply following price via our trading process will set us up to take advantage of whatever the market will throw at us. Those who are worried do not have a process and should immediately head to sign up to Big Wave Trading. If you are overconfident in what will happen you will have to sign up after you lose in this market. We see it all too often with those who are scared or overconfident always leads to trouble. Stay grounded with Big Wave Trading.

One wild card will certainly be the Chinese stock markets. Both the Shanghai and Shezhen have been on amazing runs, but what will happen next? After these types of runs we see some spectacular moves to the downside. We do not know if they have topped or not, but following a simple trend following strategy would certainly give anyone a heads start. It will be interesting to see who the world markets react to a slide. Stay tuned.

Another potential watch point is the VIX index. Today it was able to close above the 15 level in quite some time. Each of the past few times we have been up here traders have sold the VIX. Expected volatility appears to remain calm given where the VIX is trading, but is all of that about to change. Volume came into VXX today and while it has been a tough vehicle to trade it does appear it is looking to make a run to the upside. Keep an eye out.

Last but not least HYG and JNK are trading like something is about to snap in the high yield markets. March support is now gone and it is looking like January low is the next stop. Certainly the Federal Reserve statement will certainly impact how these ETFs trade. Any whiff of a rate hike would certainly cause a big stir.

While many risks still lurk this market has been quite resilient. We have to see any side of this market find momentum. Upside or downside movement does not have any follow-through. Slop and chop continues to reign supreme.