Greece has certainly let its voice be heard Vis a vie its referendum vote on Sunday evening. Futures took a large hit Sunday night and recovered a bit throughout the morning. Buying picked up just after the morning bell struck. Closing the gap created by the Greece situation stocks appeared to be racing for new highs only to see gains wither away. Volume exploded on the session as many traders were trying to battle for day trading supremacy. We do find it humorous the NASDAQ was able to close just above the mid-point of the session. Today’s trading could have been a lot worse and for the bulls the end-of-the day spike certainly helps their cause. Unfortunately, it does appear this market is going to wait on a resolution before proceeding in its next big trend.
While most are watching Greece many have turned their sights over to China. The Shanghai is undergoing major distribution. Even after today getting the announcement support for the market was going to rush in did not starve off sellers. Sellers continue to win the day over on the Shanghai. The index is off 27% from its high. Let’s not forget in April of 2000 the NASDAQ was cut down by 40%! Is this a crash? Who cares at this point in time? The real fact of the matter is the index is in a downtrend and should be treated as such.
Last Monday’s low held today in a good sign for stock market Bulls. However, if we see the market take out this low you will certainly see a rush of selling.
Stick with the trading the plan by cutting losers and sticking with winners. More to come tomorrow.
