No deal for Greece's second bailout was the noise de jour, I mean who cares about Greece its the size of North Carolina. Then there was a report that Moody's has placed three French banks on review (Oooo, Moody's is well known for timely calls, NOT!) for potential downgrades due to exposure to Greece's debt put pressure on equities.
And then more bad economic news, the Empire Manufacturing Index was horrendous and that pushed the futures even lower. The Consumer Price Index for May rose by +0.2%, which was above the consensus for +0.1%. When you strip out food and energy (I wish I could strip that out of my budget), the so-called Core CPI came in with a gain of +0.3%, which was also above the expectations for +0.2%. The Empire Manufacturing Index for June was reported at -7.79, which was well below the consensus expectations for a reading of 11.72. In addition, the Employment Index was reported at 10.20 vs. 24.73 in May, while the New Orders component plummeted to -3.61 vs. 17.19. Looks like SPX headed to 1200! Folks are running to bonds, dollar is rallying, oil crashing. You see QE is working just fine.
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Volume not even close to capitulation. The big spikes of volume came during the second ninety minutes of the day during the heaviest selling. 21.4% of the SPX are above their five day moving average, 15.2% are above their 10 day average, 8.4% are above their 20 day moving average, 13.4% are above their 50 day moving average, and 53.2% are above their 200 day moving average.
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| ADX about to breakdown |
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| OVERSOLD |
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