2. SPX has reached the 38% retraceement level in Futures at least around 1205 which could be the extend of wave B down.
As we have 2 central banks giving some spin to the market later this week with the ECB likely cutting at least 25 BP with Draghi now on the driver seat. The FED will definetly put more weight to a QE 3 play – both will help for a trigger upside move as we are playing out a regular week 5 counter-move week so far and sentiment still to bearish.
The Papandreu bullshit ( smart game) will be discussed in an emergency meeting today and early new elections plus the Referndum will be discussed – I doubt that the confidence vote will be done scheduled for Thursday as 2 of the part members have already resigned and the majority is gone. It is ironic though that a tiny country smaller than New York can trigger trillions of Dollar swings in global markets – that is only due to one reason though.
That the global financial system is bankrupt and from Obama to EU Leaders we can say they have completely failed to fix anything. Despite we have globably the lowest interest rates ever in history – deep negative and close to zero for years plus central banks buying insanely all the junk – a little island can bring global markets to the brink of a crash ( like in 1932 than Austria had a similar role).