TVO Market Barometer 7/6/15

TVO MB 7-6-15b

The Greek decision to reject austerity was wholeheartedly rejected by the market today, but the hit was not as much as some folks thought it would be. So was the vote already priced in or is more selling to come? When looking from a volume perspective the answer would likely be yes and yes. The big boys surely did see it coming (the word “Grexit” has been in Collin’s Online Dictionary since 2012, along with “Greferendum”… I kid you not) and have long since hedged themselves accordingly, but the Heat Gauge is not showing any signs of cooling at the moment. So the SPY bulls may want to check their enthusiasm before they claim victory over holding the 200 day MA (FYI: the forgotten NYSE has already spent a week below its own 200), as another flush down to 202-204 may lie in store. It is a Fed week after all. -MD

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