Brexit…Should We Stay Or Should We Go???

Commencing on Monday when the DAX, EuroStoxx50 and FTSE 100 gapped open higher, the Island Bottom formations in the DAX and EuroStoxx50 have been a great bullish indicator. The five-day totals are astounding.

  1. DAX +750 points (+7.85%)
  1. E50 +230 points (+8.18%)
  1. FTSE +400 points (+6.77%)

Brexit - DAX

Brexit - E50

Brexit - FTSE
These European bourses have dragged the U.S. indices higher with them. Filling these Rollover Gaps remains my near-term target. There are far too many bears out there.

Speaking of the bears, there is now talk that if Britain remains in the European Union this will be a case of “buy the rumor / sell the fact.”  What will it take for these bears to go away? I am pretty sure new all-time highs in ESU will shut them up. My bullish ESU targets remain at 2106.25…then 2119.75…followed by some nice end of quarter window dressing which will take ESU to new all-time highs above 2132.25.

Brexit - ESU

Brexit - YMU

Brexit - NQU

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Tony LaPorta

Tony LaPorta Futures Maven

Tony LaPorta has been active in the futures industry for over 36 years including membership at the Chicago Mercantile Exchange (CME) and the London International Financial Futures Exchange (LIFFE). Tony is an ex pit-trader turned screen-trader.