Greek News Impacts Wall Street

The tick-for-pip-for-point moves in the highly correlated global markets have Oil-S/P Futures-Dollar Index locked in a pattern that none can break free from. As risk is bought equities move up and the dollar moves down, and vice versa. This was seen again as news broke the the Greek budget deficit will be addressed by the ECB.

Tit-for-Tat Tuesday has created a mass of volatility as European futures markets close for the day, with a net 500 pips of movement between the major pairs in the 11.00am to 11.30am move that ended up finishing right back where it started.

In the long oversold equity bounces the major pairs have tried to move higher, but have been impeded by the fact that global equity and commodity trade is still in a short near-term trend at this time.

The dollar index has held support at 80.02 which is TheLFB Swing Point Support 2 area, and looks comfortable holding that as equities struggle to move higher. This sets up a potentially explosive Asian trading session.

In the daily 8.30am and 4.00pm web seminar we discussed the fact that the major pairs had absorbed Usd buying which was against the 4 hour trend

It is also against the history that Wall Street has set in 2010 of not being able to complete a session of trade that cashed in on overseas futures momentum to the long side.

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