Futures Drop as Greece Drags Feet

No Greece deal and some signs of China slowing has the futures under pressure this morning. This is the biggest gap down of the year so far, and will be a true test of composure/speed moving forward. In the last few sessions the market was hypnotized by Apple (AAPL) screaming higher as the breadth of the market narrowed and key stocks failed at Momentum break out levels. Yesterday you also had the VXX close at the highs of the day as the market was well off lows. All signs that the three days of choppiness might not end well for the short term Bulls.

There is an “Ascending Channel” that I’ve talked about numerous times in the last week or so. This will be tested today. There are actually three of them, each one with a different angle of intensity. The first real level on the S&P is where we are opening near 1333-1336. A daily close below this will knock out some of the Momentum Bulls.

Strong markets usually ride a 10/20day moving average, which we are extended from. So this market can retrace down to 1318-1322 and still be considered strong! Under this is 1306-1312 level is a major area.

See if any groups/stocks can go green today besides AAPL. This will give us some clues to the type of day we might be in for.

Disclosures: Scott Redler is long SPY, OIH, QCOM, VMW, WMT, TBT, HAS, LULU, LNKD calls, VXX. Short DIA, QQQ.

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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