The big news this morning is the S&P downgrade of the Greek debt rating to B. It's about time. This has been mostly priced in, but the Euro is selling off, and most European markets are down today at this moment.
If Greece leaves the Euro, which I think it will, I see the drachma coming back at a 50% discount to the Euro, at least. I think I'd be trading from the Greek Islands if that happens.
Last night the S&P futures were up as high as 7 points and have weakened considerably. This is not the type of action you'd expect from a successful demonstration of harmony from a daily confluence zone. Regardless, I'd like to see the S&P back up around Fridays highs before I speculate on it. There is also a gap lower at 1312.62 on the S&P cash.
The US dollar has completed a beautiful 5-wave rally from its lows. I expect some consolidation here over the next few days, but it's a good start to making a real turn.
I'd expect to see silver bounce quite well from these levels along with most every other commodity.
Today I will not be trading. I will be traveling to San Antonio for the first session of mercury amalgam removal. I'm very much looking forward to it, and hope this process will represent a positive milestone in my life.
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