Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Turnaround Tuesday Arrives On Schedule, But Will It Last?

Published 06/29/2016, 01:20 AM
Updated 07/09/2023, 06:31 AM

ES (Emini S&P 500) is in the process of recovering some of the 138 point (6.5%) Friday-Monday Brexit nosedive.

Thus far, ES has retraced 20% of the decline, which is a start, but is hardly "technically significant," and qualifies as a relatively shallow bounce off of the lows.

If the decline off of the two June highs at 2119.75 and 211.50 (June 8 and June 23) represents a big double top, then only a climb that pushes up through 2065 on a sustained basis will meaningfully compromise the otherwise still-developing major top formation.

Key, heavy resistance along the road to 2065 resides at 2020-2025, and then at 2060-2065, which we need to watch closely for signs of either recovery exhaustion/reversal, or upside penetration/acceleration.

Meanwhile, as we discussed on Monday, sympathetic oil weakness managed to hold its prior pivot low exactly at $45.83 prior to turning up for a run above key initial resistance at $47.00, which has been extended up to $47.60/70 in overnight/morning trading.

A sustained climb above $48.80 is needed to trigger stronger bullish signals that will point to a test of the June 22 high at $50.54.

At this juncture, failure to sustain Tuesday's gains followed by a decline and close back beneath $46.80 will compromise the timing of the next upleg (to $53.00-$54.00).

ES, OIl Chart

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.