Hello Traders,

Below is an intra-day update I receive from TradeTheNews.com 

It summarize the “main winds that are blowing the market right now”. Below that you will see my weekly chart of the mini Russell with some levels to watch. Today’s closed below 1244 may trigger longer term correction in my opinion.

US equity losses have been relatively subdued this morning, although the VIX volatility index has crept up to its highest level in more than 3.5 months. At their worst levels, the DAX and the CAC were down more than 4% a piece, but they are well off their lows heading into the close of European trading. The 10-year bund yield is down 12.8 bps to trade around 0.793%, while the 10-year yield is down more than 10 bps to trade 2.369%. Hanging over markets is the gloomy prospect of the Shanghai Composite down 3.3% today, putting it officially in bear market territory, despite the PBoC action this weekend. As of writing, the DJIA and S&P500 are both down more than 1%, while the Nasdaq is off 1.23%.

With Greece’s solvency hanging in the balance, the divide between Greece and its creditors is only worsening. The EU Commission’s Juncker accused Greece of unilaterally breaking off negotiations, even as Greek officials accused him of lying about Athens’s negotiating positions. Tsipras said he would campaign for a no vote in the referendum, further alienating his European partners. It is looking highly doubtful that the IMF payment due tomorrow will be made, however the ECB’s Nowotny stated that Greece missing the payment does not necessarily mean default. Reports suggest that neither the IMF nor the EU will make any move to reach a last-minute deal until the referendum takes place on July 5th. After trading as low as 1.0950 yesterday, EUR/USD has steadily climbed back to 1.1177 today.

Recall that Puerto Rico is also having a debt crisis moment of its own. Over the weekend, Puerto Rico Governor Padilla, the country can no longer make payments on its $73 billion in debt. Prices of highly rated municipal bonds are sharply higher this morning, as yields on some maturities fell by as much as six basis points as uncertainty over both Puerto Rico and Greece fueled a flight-to-safety trade.

Continue reading “Weekly Heiken-Ashi Chart Mini Russell 2000 for 6.29.2015”