The question at yesterday's close was resolved to the downside today as SPY pursued a slow grind down into the close with a little double bottom at S1. Caused by what?????? Economic reports were net positive, BUT the Greeks are still up in air (no surprise) and with the FINAL deadline looming on June 30th ...Tuesday... we can expect wild gyrations until and likely after that date as doubts ebb and flow regarding the success of the bailout program.
Tomorrow is Friday, historically 70% down, and today's close offers some support for that thesis.
We reiterate our premise that next Wednesday is the best odds date for the bulls, discounting the effects of the Greek situation. Our models are net neutral (in cash) with the technical signals diametrically opposed....of the 4 models posted today...2 in cash, one in SPY and one in SH.
Some days are like that and until the smoke clears its best to stand back or trade small. The current short term bias (2-3 days) is bearish.