By Markus Heitkoetter
￼If you woke up this morning and pulled up a chart before reading the headlines, you might have thought the sky was falling!
The E-Mini S&P was down as much as 1.5% in overnight trading after Greece voted NO on Sunday’s referendum.
The referendum on whether or not to accept the bailout terms set by Eurozone creditors produced an overwhelming 61.3% NO votes. It was expected that the vote would be close, so the resounding NO from Greece sent shockwaves throughout global markets.
Germany’s DAX index lost 1.5%, and Italy’s MIB index lost 4.0%. While in the U.S. the major indices fared much better.
After trading much lower in overnight trading, the major U.S. indices spent the rest of the early session trying to make up losses. At day’s end, the major indices were in negative territory, but it was an impressive comeback.
The S&P lost 8 points today. After being down almost 1% during the U.S. session, the S&P ended the day at 2068.76 with a 39% drop.
The DOW had a 47-point loss on the day. After trading at lows not seen since February the DOW worked its way higher and ended the session at 17683.58 with a .26% decline.
So what’s next for Greece?
The big question is whether or not Greece will remain in the Eurogroup. Greece appointed a new Finance Minister that might help the cause, and Eurozone finance ministers will hold an emergency meeting on Tuesday. The next official deadline to watch is July 20th, where a 3.5 billion euro payment is due to the European Central Bank.
In the U.S. traders have Trade Balance numbers at 8:30am ET tomorrow to digest, followed by JOLTS Job Openings at 10:00am ET.
Crude Oil (CL) lost a whopping 7.47% today with Crude Oil ending the open outcry session at $52.55 a barrel.
Concerns over the Greek crisis and the global economy helped contribute to today’s drop. But there were also concerns over Iran. With a July 7th deadline on a nuclear deal just around the corner, the possibility that reduced sanctions against Iran could increase Crude Oil supply contributed to the drop as well.
A PowerX Method Sell Signal was identified on June 29th. Today’s drop took CL through an ADR Profit Target at $53.65.