The Greek situation is scary. If Greece were the only country that was borrowing money at an unsustainable pace I would say that this represents a buying opportunity. However, there are a large number of countries, including our own, that are operating in an unsustainable fashion. One must respect the possibility of contagion especially given the recent complacency, negative seasonality and following an 80% rally.
With respect to all the risks we are approaching support at 1150 on the S&P 500. The market is very oversold on a short term basis and we had two days of heavy put buying and some panic. I think we could get a counter trend bounce here in the short term. There is binary risk in the market. If Greece defaults support will not mean much. As such, I will likely play small if I decide to play for a bounce.