Brexit wins, the UK is going to progressively negotiate its way out of the EU, and the markets are in turmoil as no one knows what this will really mean for the global markets. My guess is, not much. However, markets hate uncertainty, so you're seeing this panic selling today. Last night when the vote tallies showed that the "Leave" side was probably going to prevail, the S&Ps dropped 110 points. This after it was up about 12 points that afternoon. So that's a 122 point drop!
The market will head lower. Remember, this is a ((c)) wave within a Minor wave 2, both of which are strong and sharp moves. The rally from this morning were bargain hunters getting "discounts" on stocks at the open. Long term, they will be right, but short term, they will be hurt as this market should roll over and decline towards 2000 by the end of the day. The market rallied for several days, with the anticipation that the UK would vote "Stay". Not sure why that increases stock values if everything remains the same, but it did rise. I suspect that was just speculators, day traders, etc. pushing the markets higher to play with the market while the big players stayed on the sidelines until after the vote. Now that the vote is in, all that rallying needs to be unwound, and many people will be bailing on stocks until certainty and stability returns to the global markets.
There should be at least one more push down towards the 1980-2000 range before any meaningful bottom can be considered.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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