The Market Trend Model (data sheet) continues to show a positive bias despite the renewed selling during today's market session. The Nasdaq (chart) appears to want a retest of the recent trend line breakout at the 5,100 price level, the Russell 2000 (chart) appears to want a retest the 127 price level, and the Nasdaq-100 (chart) appears to want a retest of the 109 price level. Lagging behind is the S&P 500 (chart) which once again broke below the horizontal price support around the 2,120 price level.
Greece came back into focus today as the long anticipated "Grexit" (or the never ending Greek bailout talks) appeared to fall apart once again. I continue to maintain that whatever the outcome, the Greek resolution (or dissolution) is already priced into the market.
What did seem to help markets lower today were comments made by Carl Icahn when he was interviewed on CNBC (article). Icahn warned that the market is "extremely overheated - especially high-yield bonds...I think the public is walking into a trap again as they did in 2007." While Icahn is likely one of the most successful investors of all time, one can not help to wonder what his true motives are when he makes such public proclamations.
At least for the moment, the current sell off in the market appears to be a normal reaction and retracement to last week's breakout.