Greek turbulence spilled into a Wall Street beating with fresh SPX lows being hit. The market is on a newswire watch and there is not much you can say or do about it in respect to a huge risk off trade in all related asset classes. The fear headline today was any Greek resolution could be delayed till July 11, which could cause IMF/EU aid payout to be delayed until such day, but what was not widely reported is there is a meeting scheduled for Sunday and a Eurozone finance minister gathering Monday and a leaders summit 23-24 June. Hence, today’s fear could reverse at any minute, but the market jitters will not be soothed until something concrete emerges . As an add-on, a risk of Greek gov’t collapse which would mean new elections and thus slowdown everything is now on the table.
If the above fears weren’t enough, the market got back to a ‘slowing economy’ due to the negative Empire PMI and Thursday is the Phily #. These are first June #’s.
All in, essentially these are the same things we’ve been dealing with days, if not months and so the question is how much of this is baked into the 7.5% correction and if today’s VIX climb of 18% suggests capitulation was/ is close.