As I was writing in my previous posts  Market Refuses to Fall Despite Increasing Greek and Chinese Problems , it was strange that the equity markets were’nt taking notice of the huge problems with the Greek debt and the associated domino effects. With the S&P downgrade of Greece to junk status and the Greek market falling by 6% on debt concerns has forced the bigger European and US markets to take notice.

From MarketWatch – U.S. stocks hit hard by S&P downgrade of Greece

US. stocks caved on Tuesday after Standard & Poor’s cut its rating on Greece. “If followed by Moody’s, Greek bonds will no longer be able to be used as collateral in borrowing from the European Central Bank,” said Peter Boockvar, equity strategist at Miller Tabak. The Dow Jones Industrial Average  fell 147 points to 11,059.96. The S&P 500 Index  shed 19.54 points to 1,192.51. The Nasdaq Composite fell 36.03 points to 2,486.85