8:50am (EST)
There was a ton of drama involving the market on Tuesday and it all centered around Greece. Wall Street got rattled after learning the prime minister of Greece said he would put the European rescue plan to a popular vote – the first referendum to be held in Greece since the mid-70’s.
Of course, as the day wore on there were conflicting reports about the next steps in Greece’s attempt to solve its debt crisis, raising the possibility that its government might not even be around for a confidence vote by Friday.
As a result, the bulls lost their second-straight outing as the bears pushed another layer of support.
The Dow dropped 297 points, or 2.5%, to finish at 11,657. The blue-chips traded to a low of 11,630 and we mentioned if 11,800 were taken out 11,600 would come into play. Of course, we were looking to split the difference and wanted a close above 11,700 but the bulls still held support which is all we could really ask for.
The S&P 500 sank 35 points, or 2.8%, to end at 1,218. The index tripped a low of 1,215 and was stretched just below our 1,225 closing target. There is further risk down to 1,200 so it will be interesting to see if buyers do come in if the S&P tests another layer of support.
The Nasdaq declined double 7’s, or 2.9%, and settled at 2,607. Tech traded to a low of 2,597 shortly before our midday update on Tuesday and rebounded before falling in danger of finishing beneath the 2,600 level. There is further risk down to 2,550 but we are looking for a bounce.
It looks as though we may get one as futures are pointing towards a higher open this morning.
As we head to press, Dow futures are up 40 to 11,722 while the S&P futures are higher by 6 to 1,230. The Nasdaq futures are showing a 9 point pop and are at 2,312.
Subscribers, check the Members Area for the trade updates and be on the lookout for a possible Trade Alert this morning.
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