Sunday night talks (one of many moving deadlines) have failed to bring the Greek coalition government any closer to agreeing to the Troika's demand of more fiscal austerity, in fact two of the leading coalition parties, LAOS and the New Democracy have both said they will not support the cuts the Troika is demanding. Apparently tired of the Greek drama or what they call "dithering", the Troika has demanded an answer by 11 a.m.
It doesn't look good for Papademos, who threatened to resign on Monday if the Greek coalition did not come to an agreement that would satisfy the Troika. Will see if he keeps his word.
The words from the coalition partners will certainly test Papademos's credibility to keep his word, LAOS has said the country could not afford the cuts, which would cause a "revolution of misery which will then burn down Europe", while the ND said, they would not permit anymore austerity cuts.
The Euro has opened down in this week's opening trade and ES in overnight trade is close to testing Friday's intraday lows. It should be an exciting 12 hours in Europe.
A 3C negative divergence on Friday's close, overnight trade has broken 3 intraday support levels thus far from Friday and is close to the intraday lows.
This is a 5 min chart of the EUR/USD with the Euro opening with a mild gap down, but recently in the last 15 minutes, downside momentum has picked up. I would guess that some very long meetings in Greece may not be going very well, we'll see if some headlines pop out in the next hour or so.
Tomorrow is light on the US financial reports, Thursday and Friday will be quite a bit heavier and we still have a slew of earnings this week.
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