Geez....listening to the late national news on Sunday night you would have expected the DOW to open down at least 250 points today. As usual the talking heads exaggerated the situation a bit. Nevertheless it was an ugly open and real roller coaster ride for the rest of the day. Our models are now mostly in cash having been stopped out of the SPY and SSO positions in early going. Greece has now become something of a bad joke and Tsipras's credibility is near zero so we're likely to be hammered with Greek induced volatility for some time. When they finally do get it ironed out we can expect one whopper of a rally.....unfortunately there will likely be a number of false starts before we get there.
Farther down the page is the FXI (China) chart, which continues to deteriorate (down another 4% today). There's actually fairly strong support down at the 42 level and if we get there it may represent at least a modest risk/reward opportunity. Note the nice technical alignment of the ergodics and the ADX on the FXI chart...this is real selling. The same 4 hour chart on SPY in much more technically convoluted.
