29 June 2015
SP 500 and NDX Future Daily Charts - 2% Correction, Long Overdue
US equity markets had about a two percent correction, with the SP 500 testing its 200 DMA.
Forget the domestic economic news, it was all geopoliticals and mostly about Greece.
The markets do not like the uncertainty of what will happen in Greece, as well as Puerto Rico and the Ukraine, not to mention the wavering financial assets bubble in China.
I am treading slowly through the commentary and news about Greece. The least helpful are those who are mostly projecting their egos or some ideology.
This is primarily a political problem. Greece has a left wing government that the Western powers find unattractive compared to the puppet governments which have facilitated the bailing out of Greek's private creditors while sustaining an unsustainable economic situation.
I am puzzled by Jeffrey Sachs who suggest that Greek default on their debt, but remain in the Eurozone. I am not quite sure how they might do that, and while Jeff says their is no mechanism to actually kick them out it does seem a bit too cute. The EU does not have a mechanism for forgiving one member's debts and not another's either.
Have a pleasant evening.
Posted by Jesse at 4:10 PM