Wednesday, June 24, 2015

Make or Break...06.24.15

We did see our expected weakness for the week, with SPY retreating to a bearish S3 level for the last 2 hours of the day.  See 3 minute and 2 hour bar charts below.  Ergodics and ADX were divergent on about 60% normal volume, reflecting market instability.  We're now poised at a technical make or break level (see yellow line on 2 hour).  Unfortunately, there are no apparent prime movers to drive the markets one way or the other.  The Greek situation still has some traders feeling the jitters, but as Dave Moenning pointed out today...Greece has an economy the size of Dallas, so it's more the principle of the thing and the fear of a larger trickle down effect if there is a default.
On the up side we're approaching the end of the month although it may be until the actual 1st of the month (next Wednesday) before the typical bullish pop transpires.
This year July 4th is on Saturday so no free lunch for traders.