Greece Pain......Fed On Deck....Froth Coming In

Over the weekend we heard many rumors Over the weekend we heard many rumors coming out of the Euro zone regarding what's next up with Greece and their default headaches. All of the news was on the negative side of the ledger, which caused the futures overseas to take a nasty dive lower. Never good news for United States equities when a large move down is occurring overseas since we just follow the trend established there. Our futures were nasty right out of the gate early Sunday evening and basically stayed that way throughout the overnight period. No recovery in to the open, thus, a large gap down occurred.

As per usual the markets were able to recover some as the day went along allowing equities to close off their lows but the gap down remained open. Not the best of technical news should you be fully in the bull's camp. A setback for sure but nothing deathly at this moment in time as the market has taken back many a gap lower throughout the past several months and beyond. So here we are basically in the middle of the 2040 to 2134 range on the S&P 500 that has gone on seemingly forever, and is starting to get on the nerves of those relentless bulls. Today was ultimately just another day in this long handle that doesn't want to have any finality to it. Adapt and adjust to it as hopefully have over the past many months, or pay the price financially with too many plays.

Froth has been with us for so long I have almost forgotten what it's like to see a bull-bear reading below 30% on the spread between the two sides. With last Friday being a nasty day and coming in to the week at just over 30%, I believe we'll see our first sub 30% reading since last October when we get the new data on Wednesday. I'm hoping for 275, or thereabouts, and if we continue to have a tough week this week we should see decently lower still next week as it appears to me that more and more folks are getting very frustrated with this market. It's understandable and sometimes the market works its problems in its own way. A never ending handle that refuses to get rocking either way can do the trick and I think we're finally seeing the results coming in. We can hope is all I can say but let's start with a sub 305 reading this Wednesday and we'll go from there. Froth is definitely coming in some and that's good news bigger picture for the bulls.

Ms. Yellen is on deck Tuesday into Wednesday. We'll hear her comments approximately two o'clock Eastern Time Wednesday afternoon, and the market will be listening intently to hear anything about what to expect with regards to that first rate hike, which, of course, in the end, is truly a nonevent since there's no way she'll be starting any aggressive rate hike cycle. I think the first hike is in the market. You would likely see a whoosh down when it happens, and then a very rapid recovery, but that's for down the road since she won't be raising rates this time around. The market will be tuned in to when it thinks she'll finally do the dirty deed, but whatever she says, it usually moves the market so get ready for a bit of fireworks on her words of wisdom on Wednesday.