The E-Mini S&Ps are down moderately Sunday night while gold is up slightly. Why am I getting the feeling that both will reverse direction before Monday’s session has run its course? What would truly surprise is if stocks fall to test Sunday night’s lows but keep on going. The bottomless selloff is something we haven’t seen in a long, long while, and although it is inevitable that it will happen at some point, even I’m not quite ready for it to happen now.
How far in the future might “at some point” be? Closer, perhaps, than we might care to imagine, since it is becoming all too clear that Europe cannot continue for much longer to kick Greece’s can of worms down the road. Equally clear by now is that it will not be possible to downplay the significance of a Greek default when no one can predict confidently what might follow, let alone stage-manage it.