Courtesy of John Nyaradi
U.S. stock market put on a wild display today but faded hard into the close.
Markets rallied on assurances from the leaders of Greece, Germany and France that they weren’t going to let Greece run off the cliff and it was an impressive pyrotechnic display until the last twenty minutes of trading when the show ended and darkness settled over Wall Street.
The Dow Jones Industrials (DIA) put up a 393 point swing while the s&P 500 (SPY) logged a 3.5% swing, high to low.
Everything was looking rosy and bright until the last half hour when the S&P 500 (SPY) took a dive from the day’s high at 1202 to close at 1188, a slide of 1.2%.
Why? Maybe too much ”Grecian cool aid” or just simple technical factors as the 1200 level is a significant resistance level.
The bond market isn’t buying the ”Greece is good” story as 1 year Greek bonds are yielding a ridiculous 140% and the credit default swap pricing reflects a nearly 100% probability of default. But Chancellor Merkel and President Sarkozy aren’t listening, at least not yet.
Bottom line: One thing is certain. Either the bond market or the leaders of Europe are wrong about the outcome of this drama. If Greece gets their September bailout funds, the “grand finale” fireworks show get postponed again until December. If not, the end comes soon.
Stock Market Wrap Up:
Dow Jones Industrials. (DIA) +140; +1.3%
S&P 500 (SPY) +15.8; +1.4%
NASDAQ: (QQQ) +40; +1.3%
Russell 2000 (IWM) +12.4; +1.8%
Tomorrow’s the big economic report day with unemployment, consumer prices, Empire State manufacturing, Industrial Production and Philadelphia Fed on the docket.
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