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Stock indices remain near highs despite Negative BREXIT vote

January 15, 2018

Mark Newton CMT, Newton Advisors, LLC


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Heading into the final hour of trading, S&P has successfully maintained earlier gains and remains over the highs of the last four trading days. This is a positive for further follow-through and suggests that Markets likely carry a bit higher into Wednesday/Thursday before any peak. However, the presence of Demark counter-trend exhaustion will be registered in all likelihood by Wednesday 1/16, and given that many indices and sectors are showing similar signals, we're growing ever closer to areas of strong resistance that look likely to cause a stallout and reversal of trend.

The No-vote on BREXIT initially coincided with some minor pullback in stock indices and Pound Sterling, but since both have snapped back. Bottom line, important to note that most of the rally in US has come about as a result of strength from key sectors like Technology and Healthcare, and while breadth is tepid on this advance, barely 3/2 positive, it is thought to be a positive heading into tomorrow and could left S&P up to this key 2630-40 area.