Today's session saw a close underneath the post-Brexit uptrend, and we are likely to see a move to 2,900 to 2,915 -- or the 61 percent retracement from mid-December.
The momentum of the trend via ADX-DMI is showing strength and overwhelming price action. Due to the oversold technicals, with the z-score at -1.87, a relief bounce is expected. (the weekly z-score is just -.18).
However, expect Europe's to challege the 61 percent Fib. A close below this level would cause trouble, and the index could see another 50-100 point decline to challenge the larger downtrend support.
Additionally, the 20-day is looking to cause a crossover with the 200-day .
Also, check out our excellent short call on Euro Stoxx 50 leading into the #Brexit vote!
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