The markets were strong last week breaking through resistance lines and creating new highs. We saw the same pattern in the S&P 500, Russell 2000, and the Nasdaq which is a strong confirmation of the bullish move. Volatility has been confirming the move as it continues to drop, now resting in the mid-14s. Volatility is not at the lows when the markets are at the highs but they are at the low for the year. We still have realized volatility pricing in the VIX which will take longer to pull out.
Monday is the big meeting for the Eurogroup which will give light to a direction on Greece. Greece is still the big question mark facing the markets. So far investors have been optimistic about the meeting and deal facing Greece which has helped propel the US markets to new highs and bring in volatility. Right now Greece is sounding off that a deal will be met on Monday. They are not hunting for money but for time to be able to fix themselves under a new “bridge” deal. If a deal is not reached then we could face a likely-hood of Greece pulling out the European Union.