Only about an hour ago from writing this is when it was announced that the IMF bail out did not go out so Greece has defaulted. I have no idea how the markets will react tomorrow. Australia, NewZealand, Shanghai, Hong Kong and Tokyo are already trading. I just have no idea how the markets will react on Wednesday. However, let me show you how the markets did on Tuesday.
The S&P hit the 200 Moving Average (MA) and pulled back. Not by much but the little spinning hammer means that the market could not drop too much more. The problem is that big red candle though. And when Europe and North America wake up to the news of the Greek default, things could go either way. The thing which makes this market very dangerous is that some people who are professional traders have already priced in the default. However, the non long term traders will wake up in panic and hit the sale button which can cause a tsunami which might not be needed. One thing you cannot predict in stock trading is the reaction of the crowds. I will post the same on Wednesday which is a holiday in Canada (July 1) but the USA markets and Europe ones will be open. What a rush.
When Brazil defaulted, it was insane on the markets. Look at Brazil now. I have personally written in the past that Greece needed to default and start from scratch. On this chart, notice the little white candle. The big red one from Tuesday is what worries me. It is likely that today people took profit (the short traders) and propped up the market. The long holders might dump things on Wednesday. This is not an easy game. Stay tuned.
Martha Leah Zesaguli (Nangalama)
Born and Raised in Uganda (Bududa District where our hospital has no running water)
Many years of trading equities, equities and forex