Four months ago the world seemed scared that the Brexit vote would be negative for Europe and, potentially, other global markets. Four months later, almost the polar opposite deserves discussion.
The chart below depicts the FTSE 100 on a monthly basis over the past few decades.
The index is now testing a resistance zone for the 4th time in the past 16 years at (1), while also testing the underside of line (3) at the same time.
The monthly MACD has created a series of lower highs since the year 2000. At this point, the MACD is making an attempt to turn high, just below falling resistance at (2).
What the FTSE 100 does with the 4th resistance attempt is very important for the index, Europe and the broad U.S. markets.