After yesterday's late-day selloff markets this morning look much weaker still as we approach the opening bell. 

It's not our job to read news headlines to you but here's why we are selling off:

Bloomberg quote – "Greek Prime Minister George Papandreou called a referendum and a parliamentary confidence vote, raising the prospect of derailing Europe’s bailout effort and pushing Greece into default."

We mentioned yesterday that the European stock indices probably offer better direction at the moment and as such also better support and resistance points.  Here are the charts of the German Day and teh Eurostoxx 50 again….note how they bounced lower at their key Fibonacci retracement levels. 

Important:

This morning we will msot likely take full profits in our short calls position in the SPY. 

We may also take at least partial profits in our other short positions: AAPL, UA, CAT, WYNN….we will keep you updated.

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