If there’s any question relating to the Greek election becoming anti- climatic, one just needs to see the low volume today on the market. As Greece returns to some normalcy, US markets traded mixed in anticipation of FOMC day on Wednesday. As far as equity market not selling off on Spain yields over the 7% critical level is a sign the bar has been set for European intervention.
Last week, UK led the charge and the market expects all to follow suit. Since the UK policy moves/hints noted here last week, the market has tentatively broken ~1340…” an interesting row of tall soldiers crammed together is showing up the majors charts (SP) and will likely build for rest of the week. This sets up a potentially sizable move once the top or bottom gets busted..” . The move might be tentative looking now, but with so many catalysts on deck it won’t take much to have a true follow through day.
A lot has been priced in with the bar set pretty high now, but full blown QE has not. A few firms out today speculating on a ‘Jackson Hole’ moment. Pretty gutsy, hopefully market doesn't rally into that speculation or it sets itself up for a big disappointment.