Over the weekend new polls revealed “remain” had gained the upper hand in the Brexit saga. The market cheered the results and global markets cheered. As the market neared the noon hour buyers began to wane. Sellers took over and were able to push the NASDAQ well below its open. Today’s session did not instill confidence in this market. Big Wave Trading’s market model remains in neutral mode as this market can’t seem to find any stable footing. Now we have two points of clarity for this market to hurdle. Caution remains as Janet Yellen is set to speak Tuesday and Wednesday. At least the market closed in positive territory!
If we exclude the last 4 hours of trading today was a good day. Unfortunately, we had to see the market stumble and lose all the gains post open. Not all is lost, but now Monday’s high becomes a point of resistance. The other point of resistance is Thursday’s low. It will be interesting to see how the market deals with both points as we progress forward. We do have market moving events this week all coming to a head with the Brexit vote. Betting sites clearly show “remain” the clear winner. Friday we’ll certainly get to see how this market will react to the vote.
Let’s not forget we are now in the summer season of trading. Typically, it can be lackluster and volume is typically very light. The one hiccup will be Friday with the annual Russell rebalance. Volume will be skewed in a big way! It will happen during the final hour. This week is full of fun data points and events! We’ll keep trucking with our process while others stumble over themselves to find the answers!
Best of luck this week!
