by John Galt
June 18, 2012 05:15 ET
Whew! That was close. Everyone thought that the Greeks would go hard line Marxist and instead continued with their tradition of electing a lightweight Marxist so the market futures shot up last night because nothing was solved and the economy of Greece still sucks.
Then the futures minions woke up this morning and remembered that Spain was a much larger problem and the “bailout” there was a joke:
(chart from Bloomberg.com)
The U.S. S&P 500 futures really tell the tale of sobriety for this morning and how these rallies based on false euphoria and low volume can come undone even before the markets open:
That’s a major overnight tank job from a gap up of +11 to down 4.
Then the Euro traders discovered Spain is larger also:
(last two charts from FinViz.com)
Today will be a most interesting trading day and it would appear that for once reality will determine the market’s future instead of hopium and bullcrap.
At least for one day that might just be the case.