Globex gapping down… chaRTroom link, and comments.
Better late than never? An unusual flight delay and computer checked in baggage has delayed me opening this evening’s chaRTroom. But it is worth the wait. Today’s referendum in Italy lost, which has several primary consequences, most immediately the unknown future of Italy’s banks.
Although Friday afternoon’s 2193.00 sell signal held a couple of tests of 2187.50 before retracing into the close, it was only retraced, but not reversed. The drop resumed immediately at Sunday’s opening gap down.The 2181.00 target was quickly tested and retested down to 2179.00.
Is that the end of what was likely to be only a brief pullback before probing fresh highs? A bounce is already testing Friday’s 2187.50 lows as resistance. Another negative reaction is likely at Europe’s opens, perhaps only a similar knee-jerk reaction. I would be suspicious of recovering too much before then, but not afterward. Regardless, tomorrow — and this week, with the next Fed meeting closing in — should be opportunity-rich.