Friday, June 17, 2016

MTU Weekend Ed. - Brexit/Bremain Triangle? (6/17/16)

Like the first two breakout attempts, the third one has also failed. See Chart 1 and Breakout Attempts (6/10/16).

Markets, like world's leading central banks, may be on hold ahead of the Brexit/Bremain vote, now that the intial amount of risk premium has been priced in. Stocks could fluctuate within the wide range defined by price actions over the past week. This possibility (which is not the only scenario) brings up an interesting triangle - either bullish (Chart 2 green C) or bearish (Chart 2, red B).

Potential support currently sits around 2035 and resistance around 2085.  

Chart 3 updates our ABC tracking.