Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Thus far the action is almost identical to the Euro Summit Friday gap up on June 29th. That night (Thursday) the futures were down 0.4% until word of the meeting agreement leaked around 1 AM I believe, and things turned on a dime as the dollar was pounded into the ground, the euro bounced and futures surged. Today we have identical action except that it happened in the 6 AM hour rather than in dead of the night. The euphoria from that event lasted 3 sessions and then all of it was given back over the following 6 sessions.
This environment remains incredibly difficult – you can be positioned correctly at 5 AM and incorrectly at 6 AM the way these headlines work.
Should note the Monday gap down created a gap at 136.32 on the SPY ETF chart. Will be interesting if that fills in 1 session to take back the entire week of losses.
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