Before the Brexit Results

Markets plumped for a non-Brexit. While markets closed higher there wasn't the volume to suggest a great degree of confidence in the finish.  As of writing, it would appear the market 'got it right' and an opening gap higher will emerge. What bears will be looking for is a bearish 'black' candlestick, which is a close below open despite a higher close than previous session (day).

The S&P is on course to tag upper broadening wedge resistance. Watch for a MACD trigger 'buy' as bulls look to press their advantage.

The Nasdaq looks caught in the middle of a trading range. Volume did climb to register an accumulation day, as stochastics [39,1] rolled high off what looks like a successful bullish test.

The Russell 2000 gained 2%, but little else changed. While it's still a few days away, the MACD trigger 'buy' looks on course to occur, which would be a strong bullish signal for further gains.  Rate-of-Change has remain dogged in its defense of the bullish zero line too.

Tomorrow will be about the gap from the confirmed Brexit result, and if markets make any attempt to fill it. The 'sell' the news crowd may look to attack the likely gap higher, so if such selling is rebuffed in the first 30 minutes of trading then the rest of the day's action is likely to belong to bulls too.

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician for, and Product Development Manager for I also trade on eToro and can be copied for free.

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