By Markus Heitkoetter
Today US stocks had their worst day of the year. With today’s loss both the S&P 500 and DOW are now negative year to date.
Why the drop? One word = GREECE.
Here are just a few reasons global markets panicked:
After imposing capital controls, Greek banks are closed at least until July 6th.
Daily ATM withdrawal limits were set at 60 euros (approximately $67).
Greece’s IMF payment due June 30th is unlikely.
Standard & Poor’s downgraded Greece to CCC- from CCC, says 50% probability Greece will leave the Eurozone.
The drop was felt around the world as global indices lost 2-4% today.
The S&P dropped 44 points and erased its gains for the year. With a 2.09% loss, the S&P closed at 2057.64.
The DOW lost 351 points and closed below its 200-day moving average for the first time since October 22, 2014. The DOW lost 1.95% and ended the day at 17596.35.
As can be expected the $VIX (aka Fear Index) rocketed higher. With today’s Greece uncertainty, the VIX ended 34% higher.
In the U.S., we have Chicago PMI at 9:45am ET and Consumer Confidence tomorrow at 10:00am ET. But these reports will most likely be overshadowed by tomorrow’s reaction to today’s drop, and any new news out of Greece.
Apple Inc (AAPL) dropped with the major indices and ended the day 1.75% lower at $124.53 a share.
After a wild ride over the last few week’s, today’s move finally brought AAPL within pennies of an ADR Profit Target at $124.45. A PowerX Method Sell Signal was identified on 5th Jun 2015.