BREXIT event last week was very shocking to everyone and markets across the globe reacted to it. How does this affect our market in short term and what can we expect probable longer term direction! Let's check out... BPNYA well below 70 mark and also dropped below EMA(30) suggesting to remain very cautious in current market condition and to expect a market retreat. Volatility ($VIX) has gained traction and jumped above 20 mark which shall add wide swings in the market in days ahead. A clear divergence between Price and PPO, RSI is visible in daily NYSE chart below. Will MA(200) offer immediate support near 10100 area!!! Weekly chart suggest that market may try to find support near 10100 area. RSI has dropped below 50 mark, however it won't be a surprise if market takes a further dive towards 9600 area. NYUD still remains above EMA(21), however be careful as situation can change quickly. RSI has managed to stay above 50 mark for now. McClellan Index is showing tremendous strength suggesting any pullback or correction should be used as low risk buying opportunity as long as McClellan Index remains above EMA(59) and NYSE remains above MA(100). Overall market are under reactive mode to BREXIT event and could take several days/weeks to recover. We believe that any correction or pullback will be very contained and controlled. Global central banks will make every effort to pump more money if needed to save the market and economic recession. This is probably the beginning of something big and all we need to do is be cautious.
Market remain jittery, be cautious... Comments are closed.
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