Tuesday, June 14, 2016 S&P 500 Futures #PreMarket Comments by Michael Blythe @FairValueTrader

Good morning. Brexit concerns seem to be finally entering the market with less than ten days until the vote and polls seeming to indicate the British population favoring a withdraw. Yesterday, the ESU6 broke and closed below the 2074 level which now has me leaning toward selling rallies.

Overnight, the ESU did hold the VWAP for this year at 2060 but continued to make its lower highs. Positive stats for June expiration week as well the historic June calendar showing a tendency to find a low into the midmonth rebalance will keep me cautious as the two day Fed Meeting begins today. I will again be trading with smaller size and hopefully an open mind.

At this point, the move to risk off ahead of the vote has been very orderly, nothing that suggests panic.

Levels to watch on the downside are the globex low at 2060 (*) followed by 2057 (**) then 2049 (***). To the upside, first resistance is 2067 (*) then 2072 (*) and 2079 (**) near yesterday’s VPOC.