The collision of global markets and social mood

Monday, July 6, 2015

Monday -- OXI, Rainbows, Giga-Mansions

ES Futures:
Gapped down sharply and clawed back into the trading range. Bounce appears corrective thus far . . .

Greece voted "OXI" -- NO. Futures cratered. Varoufakis resigned. China managed a healthy bounce. Futures recovered.

China's action occurred after orchestrating its top brokerages to pledge almost $20 billion to arrest the stock slide, and party officials calmed investors with soothing words such as, "Rainbows always appears after rains."

AUD fresh multi-year lows. EUR resilient -- did not break June's 1.09539 swing point. CHF weak again.

Prices ripped higher on the Greek news, yet coming off their best levels. Charts still look weird.

WTI crude down 4% after failing to hold the shallow 23.6% Fib retracement level.

Gold 1164s. Weak response to Greek vote -- gapped higher, quickly filled gap and declined further.

S&P Outlook:
Overall, markets feel calm, the sharp reaction in futures notwithstanding. Even though they've clawed back inside the recent trading range, the bounce appears to be three waves thus far, therefore corrective. This can change with another leg up, but is currently a warning sign.

The Greek's No Vote is not the final resolution. It is likely the beginning of the end. So things can still change quickly, volatility can still occur.

Attention will likely now turn to deal making upon Varoufakis' resignation who was widely disliked among the creditors. He can now practice Game Theory in an academic environment once more.

Futures respected the 2039.69 cash equivalent on last night's opening low.

Overall, from a weekly perspective, this is still a market that feels as if it needs another marginal new high. The absolute line in the sand for this scenario is 1980.90.

Social Mood:

The rise of 90,000-square-foot properties is making life miserable for neighboring millionaires. Can't blame them. These aren't homes as much as estates.

Such is life at the crest of the largest debt expansion the world has ever seen.

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