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It's Greece again
Just when you think market will get a break, Greece came up AGAIN. Moody cut Greece's credit rating to Ba1 form A3. In earth language, it is like cutting your credit score to 500 from 620. Now both S&P and Moody has cut Greece's credit rating to junk. Will it trigger another sell-off? Not so sure. Yes, after the news came out, market made a intraday reversal and closed in red, but Euro still be able to hold on its gain. The Bond didn't react much too, and VIX didn't close in green. Remember yesterday I listed the $TNX chart, maybe big players knew the downgrade. Anyway, let's look at the channel chart, now we have a big horizontal channel or a trading range between 1040 and 1105. Short-term S&P has broken the rising wedge formation, that is bearish. S&P is sitting on 1090 support, next support is at 1080. |
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