Brexitmania is now evidently as potent as LSD. Just a few micrograms’ worth of imagined Brexit ‘news’ is sufficient to trigger crazy hallucinations in securities markets around the world. Yesterday’s psychotic leap, which had the Dow up 270 points by mid-morning, was robustly impulsive, since it surpassed two sharp peaks on the hourly chart (see inset). Given the flighty nature of the buying, however, we shouldn’t let ourselves become overly confident that the ebullience will linger into Tuesday. But if it does, we’ll know buyers are serious when they reach, then exceed, the 2106.00 target shown. Crucial resistance will come, as always, at the midpoint Hidden Pivot (2088.63), and it, as well as the green and pink lines, can be used to create ‘mechanical’ entry points on the way up. You should attempt this only if you are familiar with the rules governing ‘mechanical’ trades. Otherwise, tune to the chat room for learned discussion and timely tips that could prove tradable. _______ UPDATE (June 21, 8:01 p.m. EDT): I’ve set the snooze alarm to wake me if a rally exceeds 2088.63. If you’re more ambitious, you could try bottom-fishing at 2059.25, stop 2057.75. That’s a tick above the midpoint Hidden Pivot of the following downtrending pattern on the 30-minute chart: a= 2107.75 (6/9 at 4:00 p.m.); b=2040.75.
