Thursday, June 16, 2016 Morning #PreMarket Comments by Michael Blythe @FairValueTrader
Good morning. The equity indexes have confirmed the “sell the rallies” personality this week and buyers failed again yesterday to gain traction leading the ESU6 into a very weak close. Meanwhile, that weakness saw follow through overnight as the major global indices maintained a risk off trade.
For me, it’s unproductive to preplan to buy any dip (not ruling out circumstances intraday) and lower price levels could be considered more as points of interest or targets rather than outright support projections.
Downside prices are 2052 (*) globex low, 2048 (*), 2043 (**) Weekly S3, and 2039 (**) area. To the upside 2057 (*), 2063(**), 2069 (*) and 2072 (***)
While I am not predetermined to buy a pullback, after five lower sessions, two remaining days this week, and nearly 70 handles from this contracts high last week, my experience tells me to keep an open mind with this price action. IF this selling is due to event risks (Brexit) THEN at some point it will be priced in, and once everyone has flattened or shorted, it’s possible to see upside price action, especially as the week closes tomorrow.
All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC
