Q's fill the gap

The IWM, SPY and DIA fell just short. All of the 1 min charts put in a negative divergence as soon as the QQQ filled today's gap, it's a decent divergence, but I can't say it's a reversal of the move up, it could very well be leading to a consolidation either through price (pullback) or time (a lateral price formation) to get the other averages ready to try to break through the gap, it's too early to say as the only divergence that is complete is the negative 1 min as the Q's filled the gap, there's no positive divergence yet on the pullback.

As to what is going on, at 10:25 the Euro started to rally toward the downtrend line that we have been watching since yesterday, it hasn't reversed, it's has more stalled out short of the resistance area at the downtrend line, this is likely what gave the market some support.

In Europe the markets are closed, as to news...

As expected on the 60% vote in Greece supporting anti-bailout parties or anti-Troika, the Troika has (as was expected) said they may delay the $5.2bn May 10th payment to Greece. Remember Greece has a rather small $400+mm coupon due on International law bonds that were PSI holdouts, if that payment isn't made (and I don't see how Greece can make the payment or if there's any political will from the pro-bailout or anti-bailout parties to make the payment to a PSI holdout), we could see Greece being sued in international courts as soon as the next day. If I recall correctly the payment is due May 15th.

Around the same time the Euro started to rally, news broke that there is a possible memorandum letter that will be signed between the pro-bailout PASOK party (came in 3rd place in the elections) and the anti-bailout party Syriza. No one knows what the letter of memorandum would be. Of course if it were to change any of the terms of the Greek bailout it would knock the market down quickly, if it were to affirm or in any way be seen as pro-establishment, it would likely send the Euro/market surging. No one knows though at this point.

Personally I can't see PASOK cutting a deal with the newly empowered Syriza that didn't give significant concessions to the anti-bailout party. If a second round of elections are held, PASOK would likely loose even more ground and as the second largest party, coming in 3rd place, it would seem to me they may be trying to soften their pro-bailout position (after all, politicians first and foremost want to retain power). I don't get the feeling this will be market positive, but the fact there has been some movement has peaked the market's interest.