Market Price Action: Who's Taking the Lead?

The worst case scenario is expected from Greece as the ECB would not provide another extension & life line after the deadline. Besides, Greek government putting a vote on the referendum with negative advice has placed the Greece in a position for an exit. Monday's bank closure would not be avoided as massive lines would even start on a Sunday towards the early morning opening.

With that said, everyone expects the worst case scenario coming within the next trading days of next week. Which happens to be the end of the 2nd quarter trading and leaving institutions to adjust positions with an opening gap is likely to occur in the Asia session towards the next two days of trading. Volatility will increase in both directions for the European majors and the US Dollar; to say the least.

Although, the USD have made progress in price recovery, the market will dictate price action based on a fundamentally driven movement coming from the European report on Greece. The Top heavy formation on the tech angle have provided some limited recovery which is expected on a daily turn over with the three major markets.

The US Dow's performance may well be resilient in the longer term period, but immediate market reaction can not be isolated from these coming reports. Again, we remain well bid for stocks and Asian markets for now as it is weighing on the overall performance of tech and financial stocks that would carry a more positive tone for the market's performance.