It has started

In the "Bigger Picture", this weekends DO NOT MISS post, I suggested Greece was a problem, a big problem as the problem of Europe tend to rotate in and out of the market's worry zone. It is clearly back in the zone with a couple of statements this weekend, 1) from ex-PM of England, Gordon Brown who told us how under capitalized the European banking sector is and the second from none other then DSK himself, now out of his position of leadership, he's more able to shoot straight and his straight shooting was, "Greece is done" -DOOMED!

I said in the post, "That would mean the drop we are expecting would have to happen very fast, Monday, Tuesday and maybe part of Wednesday. " 


Take a look at the Euro's open thus far...

 This 5 min chart of the EUR/$USD shows about a 100 pip drop right on the open, for all intents and purposes, you can generally say our market trades like the Euro, so right now it's not looking good for world markets and the US open, however as usual, a lot can happen overnight and a lot of rumors are bound to be flying around at light speed during the European session, rumors of bailouts, and other things meant to stem the tide of losses. I don't expect much of what is thrown against the wall to stick. Remember, my analysis predicted this on Saturday long before we had any indications of the market's opening or FX opening.

Here's a longer hart of the same pair, you can see the Euro is now under a difficult resistance zone.


We'll find out in about 13 hours....