S&P 500 Exceeds 1,303 Intraday
The intraday high we are looking for has been made. Now, we would like to see a close greater than 1,295.50, which would trigger another trend exhaustion signal. Areas to watch on the upside include 1,311, 1,313, 1,319, and 1,325.
A big part of today’s rally in risk is based on these story lines (Bloomberg):
Most European stocks rose as the International Monetary Fund said it plans to raise as much as $500 billion to expand its lending resources and Greece neared a debt deal with its private creditors.
While more loans may sound good, you cannot solve the problem of too much debt by taking on more debt. The U.S. threw some cold water on the IMF raising capital idea via CNBC:
Treasury spokesperson tells CNBC’s Steve Liesman that the U.S. has no intention to provide additional money to IMF. Says Europe has capacity to solve its own problems.
While it has been widely reported a deal is close with Greece’s creditors, the bond market remains skeptical with little interest in Greek bonds today.
