"The uncertainty now begins," said Paul Donovan, a global economist with UBS, in reference to the composition of the new government and how the renegotiation of Greece's bailout terms will progress.
German Chancellor Angel Merkel has already asserted that the new government should not be given any wiggle room to negotiated the terms of Greece's bailout.
A full European Union summit is slated to take place in Brussels on from June 28-29, following this week's G20 summit in Mexico, where leaders will focus on discussing ways to boost political and economic ties to bolster market confidence. Until then, "it's going to a bumpy ride," said Peter Cardillo, chief market economist at Rockwell Global Capital.
"We need to get some real concrete moves out of the euro group and I suspect that behind the scenes there is talk eventually of euro bonds, and those are things that the market wants to really see and hear," said Cardillo.
David Rolfe, manager of the RiverPark/Wedgewood Fund, pointed out that summer is in full swing, and with liquidity down, investors should expect choppiness in the markets -- "it will be a ping pong match, back and forth."
Meanwhile, the yield on Spanish 10-year bonds rose above 7% Monday amid reports that bad bank loans in the country have reached an 18-year high, sparking concerns that the country will require a full bailout.
Spanish banks may reportedly now need €150 billion, rather the €100 billion agreed to last weekend, in financial support from the eurozone.
Ahead of the Greek elections, the markets were preparing for global central bank coordination to boost liquidity, if needed, should the event lead to chaos. But investors are now doubtful that the
plans to make any major moves at its regular policy meeting this week, though an extension of its Operation Twist bond-maturity extension program is possible.
"There's a theory of diminishing marginal impact of more successive QE," said Rolfe. " For the Fed to act with some level of decisiveness and do something that would move the markets, there would have to be more bad economic data. I'm not seeing any stresses or fissures that would require the Federal Reserve to make any surprising moves this week."
July crude oil futures fell 76 cents to settle at $83.27 a barrel. August gold futures slipped $1.10 to settle at $1,627 an ounce.