US markets declined Wednesday, but there was no real cause for alarm for the bulls. Selling remained very controlled and bullish composure remained intact. With the Greece news out of the way and little in the way of catalysts in the near future, the market could be due for a rest of slight corrective action over the next few sessions. The S&P is up 8% so far in 2012, so some consolidation is only natural and healthy.
While the Greece deal is positive for the markets in the short-term, questions remain over the longer-term future of the heavily indebted nation. New cuts will plunge Greece's economy further into recession, and many believe the latest bailout is simply delaying an eventual default and exit from the Euro zone.
All eyes are fixed on oil prices at the moment as Iran continues to push back against a global community seeking greater access to certain strategic nuclear facilities. Crude prices are at nine-month highs as tensions grow and the possibility of a blockade or military intervention grow more likely. Rising prices at the pump for consumers could have a detrimental effect on the economy just as a recovery looks set to be gaining some steam.
In stock specific news, Dell (DELL) had a rough day, dropping more than 6% after missing Wall St expectations.
*DISCLOSURES: Marc Sperling is long VXX, REGN, SLV, IBM, MCP, AGQ, GSVC, WYNN, GLD, BA, LGF, FCEL, RAX, DNDN, FIO, GMCR, ZNGA, GRPN. Short NFLX, QQQ.
