“Grexit” pretty much shot today right out of the gate. After closing at 2095.50 on Friday, the Emini opened at 2064 on Sunday evening and marked a low at 2054 within 15 minutes. I was watching the price action and posted a couple of charts here and here.
We drifted higher overnight and into the morning, finally topping out just above the 61.8% retracement of the whole move down right after the U.S. cash open.
What does today’s action mean in the cash indices? Here’s a look at the S&P weekly chart…
Having broken multiple levels of support today, the red line around 2,040 is the next level to watch. After that the yellow line presents a major level to watch… We break that and grab those oh shyt handles.
Here’s the Nasdaq Composite
Support here is pretty obvious. If we break the red line convincingly, grab the oh shyt handles again… and tighter.
For what it’s worth, I’m not so sure today’s action is anything more than a deep retracement… Transports aside…
At any rate, have fun… and use stops.