It’s a struggle to say anything worthwhile on what really was, “Hangover Monday” as a total volume drain masked the markets. Volumes in risk assets were down nearly 30% across the board as traders had no corporate earnings, economic data to attempt a move of any sort.
Not even “it’s not looking good” for Greece headlines could make a difference today as important yields in Italy/Spain continued with their remarkable recovery since LTRO bailout. Remember, be cognizant of the Eurozone headlines, but if those yields don’t exhibit stress, contagion fear is in check as far as the markets are concerned. Markets may just wait on the ECB later this week and what ‘Super Mario’ may hint regarding any ‘longer’>3mts. term liquidity operations post Feb 29 LTRO.
All in, if this is the beginning of a consolidation period, a breather, we’ll take it!. The rising trendlines from Dec/Jan in all the major indexes are clearly evident, thus a retracement level on all radars for some dip buying. On a single stock basis looking at 9ema’s.