23 June 2016 – Decision day!

It is decision day for the British to vote for either Brexit or Bremain. The market has indeed been volatile with 70 points trading range in the S&P 500 e-mini. That is equivalent to the Dow moving about 700 points within a day! The trading ranges in the indices speak for itself about the market volatility.

Dow Transportation range traded in a narrow range throughout the day. It closed with a bullish candle below its 21 EMA, 50 SMA and 200 SMA. Momentum remains downward. Daily volumetric buying pressure is at 54.9%.

Dow Industrial range traded for most of the day and rallied upward in the last half hour of the day. It closed with a bullish marubozu candle above its moving averages. Momentum has reversed upward. Short term volumetric buying pressure is at 60.1%. The index is in a daily and monthly Squeeze.

Russell 2000 gapped up on market open and traded upward throughout the day. It closed with a big bullish marubozu candle. Momentum remains upward. Volumetric buying pressure is at 24.2%.

Nasdaq 100 probed for the bottom in the first half hour before rallying upward. It traded upward for the rest of the day and closed with a big bullish marubozu candle. Momentum remains downward. Volumetric buying pressure is at 32.2%. The index is in a monthly Squeeze.

S&P 500 gapped up on market open and traded upward throughout the day. It had a last half hour rally and closed with a bullish marubozu candle. Volumetric buying pressure is at 56.4%. The index is in a monthly Squeeze.

Metals and Commodities
Oil (/CL) futures traded up to $49.32 per barrel. Gold (/GC) futures traded at $1270.6 per ounce. Silver (/SI) futures is at 17.325 per ounce.

Agriculture (DBA) ETF closed down at 22.10. Commodities (DBC) ETF closed at 15.32.

Bonds
High Yield bond ETF (HYG) is up at 84.64. Bonds ETF (TLT) dropped down to 132.23.

Currencies
The dollar index is at 94.165 and in a down trend. EUR/USD is trading at 1.12786. USD/JPY is at 104.804 continuing its downtrend.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLU, XLF and XLB respectively.

On a 3-month lookback, the relative strength order are XLE, XLB, XLU, XLV, XLF, XLK, XLP and XLI are outperforming the S&P 500.

Market Internals
Vix closed at 17.25. Vix futures is at 18.00. Skew is at 145.70. Market sentiment is very bullish. Market breadth is flattening. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The market is trading without any direction and with big moves up and down. The indices are seeing swings of more than 3% which is huge! The prognosis is that the market remains rather volatile for another day.

To YOUR wealth!