Thursday, June 30, 2016

FTSE UK Stocks Index Recovers All of Brexit Losses

It was one week ago on Brexit referendum vote eve, when the Bremain camp appeared a guaranteed win. After smart and pretty UK MP Jo Cox was assassinated, the polls strongly favored Bremain. However, on Friday morning, 6/24/16, Brexit wins and Britain decides to exit the European Union. All Hades breaks loose in global markets.

The FTSE (footsie) collapses to 5800 on that fateful Friday but recovers one-half of that loss within one hour since it occurs within one 60-minute candlestick. Trading is choppy and violent after that working towards a low late Monday, 6/27/16. A W pattern bottom forms. Say, the base is 6K and breakout area at 6.2K, to keep the math simple for Keystone's simple mind, would target 6.4K which has been essentially tagged satisfying the W pattern.

The purple line shows that the FTSE has recovered all its losses after the Brexit spank down. The hourly charts are negatively diverging so a  near-term top is likely for the FTSE in the hours ahead. Brexit, schmegzit. Life goes on in a central banker-controlled stock market. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 12:12 PM EST (5:12 PM London; 6:12 PM Frankfurt): BOE Governor Carney proclaims that a rate cut and stimulus will likely be provided in August. The pound drops and the FTSE catapults higher taking European stocks and indexes, and the US markets higher. The central bankers are the market. Kneel and worship at their feet! Sound the seven trumpets! The Carney Rally sends the FTSE to the highs of the year. European indexes closed about 45 minutes ago. The FTSE is up +2.3% to 6504 overtaking the 6.5K level. That definitely satisfies the W pattern above. The charts will have to price-in the new dovishness from the Bank of England that creates a Thursday orgy. All Hail the central bankers! The money masters that control global markets. The central bankers are modern-day God's!

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