Fundamentals: Wall Street to open lower, following on overseas action. Investors nervously eye Greece's deficit.
Technicals:
Bigger picture- Markets still in a bearish bias. There was a bearish flag earlier this morning, with a BOT Short occurring around 8:10am. When price was between moving averages on the 5 min, that was the first signs of a possible long trend, but buyers failed to propel price. Current bias is short, if price gets back in between moving averages, I would shift from short to neutral, but not long yet. If we break highs of day at 2134.75 with buying conviction, bias can then shift long.
Short term- The markets have been in a slight uptrending range since 2:00am. Around 8:10am, our short term chart broke out of the uptrend and gave short bias signals with the cross to the downside. With the indecisive short term chart, its better to wait for an evident direction before taking a position.
Course of Action: Wait until dominant direction is formed, then take trades in that direction. Currently bigger picture is short and short term is short, so look for short trend to confirm and only look for short trades until there is a condition change on the 1 min chart, which then you will stop looking for shorts and monitor for longs.
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