While Greece is dominating the headlines in the short term right now, what about the long term? Key indicators have been throwing out warning signs like crazy. There are twenty one indicators that are being tracked weekly and twelve of these are at the highest point they have been in quite some time.
• Transports have been underperforming on the broader market since last week and there hasn’t been conformation for more than 7 months
• it has slid down the summation Index again and there hasn’t been any new highs for 2 years, while the market internals have kept deteriorating
• Vix is seeing a triangular break to the upside and was up a lot last week with new lows no having been seen for more than 9 months.
• Crude is down by more than 5% for the week.
• China has gone down on the week by 6%
• S and P has gone down by 20dma and 50dma respectively.
• Both the Euro and gold are down on the week and it is looking as though they are breaking even further.
So while the Greece exit may be going to trigger off a near term bounce, you do have to ask about the sustainability of it.
