At this point words fail me once again. What will happen to Greece and their EU partners, no one knows.
For now it’s a cancer growing on both Greece and many world stock indexes.
China is more alarming after the PBOC intervened in markets to no avail. This forced the government to restrict “any” selling. This seems an over the top reaction but dictators can do as they wish but it will cause more problems as overseas investors are turned-off.
Equity markets across the globe were hit hard in Europe and China spilling over to emerging markets generally. U.S. stocks gapped open sharply lower but were immediately jammed higher as the Directedge/BATS EDGX Exchange broke leaving markets open for bulls to squeeze shorts. But as the day wore on sellers re-emerged taking stocks lower.
The beneficiary were Treasury bonds as a safe-haven. One would have expected the euro to crater but it was only down slightly which seemed odd. Gold was only a modest beneficiary while crude oil plunged nearly 7%.
In other news, PMI Services Index fell sharply to 54.8 vs 55.1 expected & prior 56.8 while ISM Non-Mfg Index was nearly flat at 56 vs 56 expected & prior 55.7.
Leading market sectors higher included: Volatility (VIX), Treasury Bonds (TLT) and Gold Stocks (GDX).
Leading market sectors lower included: Everything else.
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was still elevated Monday and breadth per the WSJ was negative as was Money Flow particularly with financials.
The markets are having serious problems and that should continue going forward especially if overseas markets don’t find a lift.
Only important data Tuesday is Consumer Credit at 3PM EDT.
Let’s see what happens.
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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001. ETF Digest was named one of the most informative ETF websites in the 10th Annual Global ETF Awards.
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||52.51||-0.02||-0.04 %||09:03|
|US Dollar||97.30||0.87||0.90 %||09:23|
|Brazil||1599.797||-1.02 %||-2.60 %||-12.69 %|
|Russia||495.327||-2.02 %||-3.41 %||22.33 %|
|India||511.345||0.43 %||2.11 %||3.01 %|
|China||69.526||-4.10 %||-6.53 %||5.28 %|