The overall outlook remains to be cautiously on the downside. The Greece headlines will continue to provide short term emotional gyrations, but Greece’s financial crisis is too small to trigger a major market correction. The market is more focused on the slowdown in China, the impact of the strong dollar on the US economy, and the fear that the FED will give in to ideology instead of sound monetary policy by raising rate under a strong dollar environment. Historically, market trends are based on fundamental not on short term headlines.
Below are the charts for the index ETFs. Click on them to enlarge to view the commentary. One should continue to be patient and be selective, do not chase breakouts. There will be plenty of opportunities if the market decides to breakout to a new all time high, it will trigger renew buying from those that have moved to the sideline.
DIA
(click on the chart to enlarge)
SPY
IYT
QQQ
IWM
