How low we go on Greece default ?

SO...here we are, facing a troubling scenario, Greece owes 1.6 billion euros due on Tuesday.

ECB & IMF have pretty much cut the line of credit to Greece

Banks and Stock exchange are closed in Greece until further notice

July 5th referendum has been OK'd by Greece Parliament

EU is willing to wait for a surprise YES vote for bailout to start re-negotiation .

How all this will play out is almost a foregone conclusion......

There is too much hostility between Greece leadership and EU / ECB / IMF.....

Now the question is .....

How much reaction will be on Wall Street ? Europe and first to open Asian Markets.....

It all depends how the verbage is from EU.......

EU holds all the cards.....

We may be looking @ 300 Dow points loss in NYSE

Dow & S&P 500 are already below 50 DMA

Nasdaq is barely above by 31 points

China has cut reserve requirements for the banks for the 4th time, will this negate some of the bearishness ?

Chinese stocks may behave better than rest.....

There is end of the month buying left, which may give recovery on Tuesday which is the last day of the month....

This is a 4 day week, market closed on Friday for 4th of July, Toronto closed on Wednesday for Canada day.....

Then there is jobs report, which may give support to market, it could be as expected.

SO...brace yourself for some buying by end of the day on Monday, Tuesday could be super strong.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed