The Brexit Never Happened $SPY Chart
Chart Courtesy of StockCharts.com
  1. $SPY is back to the price it was at before the Brexit ever happened.
  2. The market is still in an 18 month trading range on the verge of breaking out to new all time highs.
  3. If the Brexit can’t bring the market down what can? Rallying after bad news is bullish.
  4. We had a very high volume sell off followed by a high volume rally last week. That created a ‘V’ shaped bottom last week which is bullish.
  5. The more times that all time highs in price are tested the greater the odds for a breakout to new all time highs.
  6. The average true range expanded last week on the downside and upside. This was very fast trading on both the short and long side. The long side won clearly.
  7. MACD is set up for a bullish crossover.
  8. Slow Stochastic is under a bullish crossover.
  9. The $SPY has room to run higher to all time highs again, the 70RSI, and $VIX 13 before the high potential for a pullback.
  10. Brexit was an over reaction to an event that did not hold the risk that was believed as I discussed last week.

I am currently short $TLT via $TBT and I am looking to buy dips in stock indexes.