The stock market outlook for June 24 is basically for the market to open down big. There will be bounce backs if the opening is deeply down by what the futures presently show with the S&P shown as down 75 points. That downturn is bound to change before markets open.
There is little need for a technical view of the market for Friday. It will be a deep down day for stocks.
Remember though that this is not a credit crisis, nor a financial meltdown. This is a non-binding vote which will mean if the “leave” side continues to hold sway into the final results, there will have to be changes made to the EU. If the UK in the end does leave the EU it will probably mean similar results from Spain and possibly Italy.
It may also mean changes to the way the EU functions when it comes to immigration, tax laws and more. In my opinion the vote is telling politicians that the “normal” way of conducting themselves is no longer working. I think the Donald Trump campaign and the Bernie Sanders campaign both showed that many people are disenchanted with government and what they see as a status quo attitude among many politicians. The Brexit vote is another sign that citizens around the world are “fed-up” and seeking serious changes.
The plunge on Friday will most likely result in some bounces but the close will be nasty as investors tend to be emotional when it comes to investing.
A 75 point drop in the S&P though, will take the index down to the 2025 support level. I won’t be surprised if next week we see some lower numbers and then a bounce back.
I will be writing separately about my trading plans for tomorrow.
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