What a day. The market was rolling over hard all morning, then news started to filter out that Germany would come to the aid of Greece, the market moved 6 S&P point s in the blink of an eye and started a reversal and a move of 150 points from bottom to top on the DOW. All in about 15 to 20 minutes. Shorts were squeezed and covering ensued.
Then, news was released that the report was false and that stared a move lower of about 8o DOW points. The market recovered and then traded sideways into the close.
The market is in a stage where it is “fine until the next headline”,we are completely at the mercy of the next piece of news and fundamentals mean less then they have in a very long time. Even the charts take the back seat, it’s all driven by emotion, fear, greed and the next headline.
The financials (XLF) were saved by the bell again as they were on their way to breaking Friday’s lows, saved by the false rumor of Greece’s rescue by Germany. Something of course will get resolved on the other side of the pond, but expect volatility until it does.
Don’t forget the market had issues before Europe landed on the front page last week, so it’s anybody’s guess where we go from here. Friday’s lows are support.