daytrading june 18 morning, page-5

Greece lives to fight another day with the Euro - probably the most stable outcome that the world could have hoped for. However in the whole scheme of things, there is a long winding road ahead.

Expect the spotlight to now turn to Italy who have their own highly publicised issues. Their position isn't as dire as Greece, or even Spain, but all of this borrowing to bailout is putting increased strain on their own financial system as their debt levels continually rise.

To show just how broken the system is over there - Italy borrowed roughly $20B to contribute to the Spanish banking bailout, and they borrowed this at 7%. Spain are only obliged to repay the bailout at 3%. In other words, the wounded takes the hit for the crippled. As Nigel Farage put it, "its genius, isn't it".

I'm looking at that inverted H&S pattern to complete on the SP500 early this week, and then I'd expect a fair amount of profits to be taken off the table from the little bounce we've had recently. Then it gets interesting - do we put in a higher low, or continue the downtrend?