I have started to add some short in the S&P on this gap up, looking to add more short if we can push higher during the regular trading session. It should be a choppy bottom, so there should be another dip before any kind of firm bottom takes place. With the long 3 day weekend coming up, I don't think you will see too many fund managers trying to load up at higher levels from here.
If we continue to squeeze higher today, we could hit SPX 2060, which should cap any upside. I am looking for a retest of SPX 2000 on the downside in the coming days.
Beyond this week, we should probably stay within a SPX 1980 to 2060 range. It probably resolves higher as investors realize that all Brexit has done is eliminate any chance of Fed rate hikes and opens up the potential for a QE in the coming months if the S&P weakens again. Ultimately, a Brexit is actually more bullish than a non Brexit because it guarantees more cheap money from the central banks. And that is all that matters in this distorted financial world.
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