Tuesday, June 21, 2016 Morning Comments by Michael Blythe @FairValueTrader

Good morning. Global markets still appear to be somewhat resilient as the risk off trade somehow still finds momentum. Yesterday after the close, a couple of Brexit polls were released showing mixed results. With still a large number of voters still undecided, this vote will come down to the wire and uncertainty will persist this week as the markets are held captive by each poll.

In my prospective, it’s hard to imagine the ESU6 making a higher high today and instead I  am looking for a lower high and possibly a lower low. At some point,  risk concern ought to come back into equities IMHO. There is a Brexit poll to be released at 7:30 am CST (in just a few minutes from what I am hearing) and this of course could shift the balance of equities going into the cash open.

Levels to the downside 2078 (**), 2074 (*) and 2071 (**). Below there the market will aim for a gap fill to 2059 (***). To the upside, 2088 (**) should offer good initial resistance, followed by yesterdays 2092 (**) area high.

My bias is to sell this rally but I will attempt to continue to be as pragmatic as possible and remain on the side of the intraday trend.

All the best;

Michael Blythe
Futures Strategist 
Hamzei Analytics, LLC