By Markus Heitkoetter
￼With Greece on edge and Chinese stocks slumping, U.S. traders started the day with yet another sell-off.
In early trading the S&P was down as much as 1.2% and it looked like things were only going to get worse.
But U.S. stocks found support mid-day and managed a HUGE turnaround. It’s not every day you see the S&P make a 1.83% move off of session lows to end the day positive!
So what’s fueling these wild swing?
Greece (of course)
Eurozone leaders gave Greece a 5 day deadline to come up with a serious economic reform proposal. Failure to come to a resolution by Sunday will most likely result in financial ruin for Greece, and a forced exit from the euro.
If you haven’t heard, the Chinese stock market is plunging. The Shanghai Composite Index has dropped more than 25% in the last few weeks, and China is doing everything they can to stop the drop.
In an attempt to slow the Chinese stock sell-off, trading has been halted on 26% of listed companies on 2 major exchanges. The drop in Chinese stocks is fueling global uncertainty when traders are desperately looking for something certain!
Speaking of uncertainty, tomorrow is the big day when the FOMC Minutes will be released at 2pm ET. Traders have gone back and forth on whether or not the Fed will raise interest rates this year. Although the Fed’s goal is to raise rates this year, tomorrow’s minutes could provide some clarification.
After a wild day of trading the S&P ended the day with a 12.5 point gain. The S&P traded at lows not seen since March before ending the day .61% higher at 2081.34.
The DOW ended the day with a 93 point gain. The DOW was down over 200 points before rebounding and ending the day at 17776.91 with a .53% gain.
Disney (DIS) bulls have put up a heck of a fight while the rest of the market has wanted to drop. Today was one more example. While the DOW opened lower, DIS gapped higher and ended the day with a 1.21% gain.
PowerX traders can’t complain! A PowerX Method Buy Signal was identified on June 16th. After today’s gap open an ADR Profit Target at $115.87 was met.